From DailyFX:
The economic outlook is unlikely to get any better next week with the latest jobs, wages, retail sales and inflation all set to be released. While the jobs market remains robust for now, there is a real chance the headline UK inflation could hit double-figures next week. The Bank of England has already warned that inflation may hit 13% this year, while the economy goes into five quarters of recession. With the UK suffering from sky-high energy prices, a political vacuum in No.10, and a drought-inducing heatwave, further bad economic news will rile an already disgruntled population.
Retail trader data show 66.64% of traders are net-long with the ratio of traders long to short at 2.00 to 1. The number of traders net-long is 10.26% higher than yesterday and 4.81% lower from last week, while the number of traders net-short is 9.45% lower than yesterday and 5.06% lower from last week.
We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests GBP/USD prices may continue to fall.Traders are further net-long than yesterday and last week, and the combination of current sentiment and recent changes gives us a stronger GBP/USD-bearish
The economic outlook is unlikely to get any better next week with the latest jobs, wages, retail sales and inflation all set to be released. While the jobs market remains robust for now, there is a real chance the headline UK inflation could hit double-figures next week. The Bank of England has already warned that inflation may hit 13% this year, while the economy goes into five quarters of recession. With the UK suffering from sky-high energy prices, a political vacuum in No.10, and a drought-inducing heatwave, further bad economic news will rile an already disgruntled population.
Retail trader data show 66.64% of traders are net-long with the ratio of traders long to short at 2.00 to 1. The number of traders net-long is 10.26% higher than yesterday and 4.81% lower from last week, while the number of traders net-short is 9.45% lower than yesterday and 5.06% lower from last week.
We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests GBP/USD prices may continue to fall.Traders are further net-long than yesterday and last week, and the combination of current sentiment and recent changes gives us a stronger GBP/USD-bearish