Market sentiment analysis:
- Confidence in European stocks and the Euro[1] has improved after the deal agreed between the EU nations on a recovery fund to boost the bloc’s recovery from the Covid-19 pandemic.
- However, falls in crosses such as EUR/JPY[2], EUR/CHF[3] and EUR/GBP[4] suggest that market sentiment towards the Euro could soon turn negative.
Trader confidence in Euro deal fragile
Traders could yet have second thoughts about the €750 billion recovery fund agreed by the EU nations to help the bloc recover from the Covid-19 pandemic. While European stock markets have strengthened and the Euro has held its ground against the Dollar, weakness in Euro crosses suggests that sentiment towards the single currency is not as strong as it seems.
EUR/USD Price Chart, Daily Timeframe (April 13 – July 21, 2020)
Chart by IG (You can click on it for a larger image)
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[5] this week, at the IG Client Sentiment page[6] on the DailyFX website[7], and at the IG Client Sentiment reports[8] that accompany it. You might also like to check out the DailyFX Trading Global Markets Decoded[9] podcasts.
Like to learn more about the DAX index of the major German stocks? This report will help[10]
--- Written by Martin Essex, Analyst and Editor
Feel free to contact me on Twitter @MartinSEssex
DailyFX[11] provides forex news and technical analysis on the trends that influence the global currency markets.
