FxWirePro: EUR/USD downbeat; retail positioning points to further downside

EUR/USD remains downbeat,

• The pair s struggling to make gains, as the USD remains well-bid, despite President Trump’s recent attack on USD strength, as he suggested the U.S. should manipulate currencies like China and the European Union.
• The overall strength of the U.S. economy, compared to the UK, European Union, and China has kept traders on edge on whether the Federal Reserve would actually reduce rates at July meeting or not.
• The recent suggests by the European Central Bank (ECB) on further easing is keeping the euro under selling pressure.
• The retail sentiment remains in favor of the EUR/USD bears,

Retail sentiment:

• The sentiment reports from IG Markets, which is a UK-based company providing trading in financial derivatives such as contracts for difference and financial spread betting, points to bearish bias in the EUR/USD.
• IG markets’ retail positions data provide a glimpse to retail traders’ positions, which are largely used as a contrarian indicator since retail positioning moves in the opposite direction to market movements.
• As of today, according to data from IG markets, sentiment once again flipped to the bearish side after a temporary flip to bullish bias on Friday.  Today, the report suggests that 56 percent of the retail positions are on the buy side in EUR/USD, while 44 percent are bearish. That gives the pair a bearish bias.