Market Sentiment Improving But EUR/USD, EUR/GBP Weak

Market sentiment analysis:

• Trader confidence has been boosted by optimism that a US stimulus package will be agreed and that the US vaccine program is now on track.
• However, the Euro^[1] is failing to benefit, with pairs like EUR/USD^[2] and EUR/GBP^[3] falling back.

Traders more confident

Traders are becoming more confident that US President Joe Biden will be able to push a sizeable stimulus package through Congress and that coronavirus vaccinations in the US are back on track – benefiting assets like stocks that are seen as more risky.

However, the Euro is failing to benefit, with EUR/GBP falling^[4] and EUR/USD^[5] dropping as well.

EUR/USD Price Chart, One-Hour Timeframe (January 27 – February 2, 2021)

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^[6] this week, at the IG Client Sentiment page^[7] on the DailyFX website^[8], and at the IG Client Sentiment reports^[9] that accompany it. You might also like to check out the DailyFX Trading Global Markets Decoded^[10] podcasts.

--- 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.

DISCLOSURES^[12]