Softer US inflation data has allowed risk assets to move higher allowing the Dow Jones Index to recover June’s losses. UK earnings overshadow market conditions.
Traders are further net-short than yesterday and last week, and the combination of current sentiment and recent changes gives us a stronger EUR/USD-bullish contrarian trading bias.
The US consumer price index slowed to 8.5% year-on-year in July, down from June’s 9.1% reading, due to a sharp drop in energy costs, a sign that the inflation outlook…