Retail traders continue to show a bearish sentiment towards the EUR/USD and GBP/USD pairs, according to the latest data analysis from DailyFX.
The EUR/USD pair has seen retail traders increase their short positions by 14% compared to the previous week. This indicates a growing belief among retail traders that the euro will weaken against the US dollar in the near future.
Similarly, sentiment towards the GBP/USD pair remains negative, with retail traders increasing their short positions by 8% compared to the previous week. This suggests a prevailing belief that the British pound will depreciate against the US dollar.
It is important to note that retail sentiment is just one factor to consider when trading forex, as it can sometimes be a contrarian indicator. However, the latest data from DailyFX indicates that retail traders are currently bearish on both the EUR/USD and GBP/USD pairs.