Market sentiment analysis:
- Trader confidence is likely to remain high in the coming days despite a pause for breath.
- While the stock markets have responded most to the news of vaccines to combat the coronavirus pandemic, the US Dollar[1] is still looking weak and oil[2] is still looking firm.
Traders still confident vaccines will lift the markets
Traders remain positive in the wake of the news of two coronavirus vaccines that could eventually bring the pandemic under control and lift the global economy out of its slump. While more profit-taking is likely short-term after the gains for stock markets in particular over the past nine days, it is unlikely to last long.
S&P 500 Price Chart, One-Hour Timeframe (October 30 – November 17, 2020)
Source: 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[3] this week, at the IG Client Sentiment page[4] on the DailyFX website[5], and at the IG Client Sentiment reports[6] that accompany it. You might also like to check out the DailyFX Trading Global Markets Decoded[7] podcasts.
--- Written by Martin Essex, Analyst and Editor
Feel free to contact me on Twitter @MartinSEssex
DailyFX[8] provides forex news and technical analysis on the trends that influence the global currency markets.
