Market sentiment analysis:
- Trader confidence has improved so far this week as hopes of continued monetary stimulus outweigh concerns about a second wave of coronavirus infections.
- However, IG Client Sentiment data on the positioning of retail traders is sending out bullish signals for the safe haven currencies: the US Dollar[1], the Japanese Yen[2] and the Swiss Franc[3].
Trader confidence to ebb away?
Traders have moved back in to riskier assets so far this week as hopes of yet more monetary stimulus outweigh fears about a second wave of coronavirus infections. However, IG client sentiment data – based on the positioning or retail clients using the IG trading platform – are sending out bearish signals for the “risk on” currencies like AUD[4], GBP[5] and EUR[6], and bullish signals for safe havens such as the US Dollar, the Japanese Yen and the Swiss Franc.
In this webinar, I looked at the trends in the major currency, commodity and stock markets, at the forward-looking data on the economic calendar[7] this week, at the IG Client Sentiment page[8] on the DailyFX website[9], and at the IG Client Sentiment reports[10] that accompany it. You might also like to check out the DailyFX Trading Global Markets Decoded[11] podcasts.
Like to know more about the psychology of trading? Our guide is here [12]
--- Written by Martin Essex, Analyst and Editor
Feel free to contact me via the comments section below
DailyFX[13] provides forex news and technical analysis on the trends that influence the global currency markets.
