FX Week Ahead: US Inflation; BOC & ECB Rate Decisions; UK GDP; Canada Jobs

IG CLIENT SENTIMENT INDEX: USD/CAD RATE FORECAST (MARCH 5, 2021) (CHART 3)

FX Week Ahead - Top 5 Events: US Inflation; BOC & ECB Rate Decisions; UK GDP; Canada Jobs

USD/CAD: Retail trader data shows 70.52% of traders are net-long with the ratio of traders long to short at 2.39 to 1. The number of traders net-long is 4.49% higher than yesterday and 20.78% higher from last week, while the number of traders net-short is 9.86% lower than yesterday and 4.01% lower from last week.

We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests USD/CAD 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 USD/CAD-bearish contrarian trading bias.

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