Currencies - IG Client Sentiment

[MongiIG]

GBP/USD IG Client Sentiment: Our data shows traders are now net-short GBP/USD for the first time since Oct 29, 2021 when GBP/USD traded near 1.37.

NUMBER OF TRADERS NET-SHORT HAS INCREASED BY 16.90% FROM LAST WEEK.

SYMBOL	TRADING BIAS	NET-LONG%	NET-SHORT%	CHANGE IN LONGS	CHANGE IN SHORTS	CHANGE IN OI
GBP/USD	BULLISH	49.59%	50.41%	-1.00% Daily -10.15% Weekly	4.08% Daily 16.90% Weekly	1.49% Daily 1.72% Weekly

GBP/USD: Retail trader data shows 49.59% of traders are net-long with the ratio of traders short to long at 1.02 to 1. In fact, traders have remained net-short since Oct 29 when GBP/USD traded near 1.37, price has moved 0.68% lower since then. The number of traders net-long is 1.00% lower than yesterday and 10.15% lower from last week, while the number of traders net-short is 4.08% higher than yesterday and 16.90% higher from last week.

We typically take a contrarian view to crowd sentiment, and the fact traders are net-short suggests GBP/USD prices may continue to rise.

Our data shows traders are now net-short GBP/USD for the first time since Oct 29, 2021 when GBP/USD traded near 1.37. Traders are further net-short than yesterday and last week, and the combination of current sentiment and recent changes gives us a stronger GBP/USD-bullish contrarian trading bias.

Jan 5, 2022 |  Research, Research Team. DailyFX

[MongiIG]

USD/JPY IG Client Sentiment: Our data shows traders are now at their least net-long USD/JPY since Oct 21 when USD/JPY traded near 113.97.

Jan 4, 2022 |  Research, Research Team. DailyFX

NUMBER OF TRADERS NET-SHORT HAS INCREASED BY 9.98% FROM LAST WEEK.

SYMBOL	TRADING BIAS	NET-LONG%	NET-SHORT%	CHANGE IN LONGS	CHANGE IN SHORTS	CHANGE IN OI
USD/JPY	BULLISH	22.13%	77.87%	-6.70% Daily -18.08% Weekly	6.78% Daily 9.98% Weekly	3.47% Daily 2.23% Weekly

USD/JPY: Retail trader data shows 22.13% of traders are net-long with the ratio of traders short to long at 3.52 to 1. Our data shows traders are now at their least net-long USD/JPY since Oct 21 when USD/JPY traded near 113.97. The number of traders net-long is 6.70% lower than yesterday and 18.08% lower from last week, while the number of traders net-short is 6.78% higher than yesterday and 9.98% higher from last week.

We typically take a contrarian view to crowd sentiment, and the fact traders are net-short suggests USD/JPY prices may continue to rise.

Traders are further net-short than yesterday and last week, and the combination of current sentiment and recent changes gives us a stronger USD/JPY-bullish contrarian trading bias.