Market sentiment analysis:
Trader confidence still positive
Traders continue to buy into riskier assets like stocks as comments from central bank officials point to a lack of concern about inflation despite a global economic recovery, suggesting interest rates will remain low for the foreseeable future.
While stocks rise, losses for the safe-haven USD persist and IG client positioning data point to further weakness ahead for the Greenback.
US Dollar Index Price Chart, Four-Hour Timeframe (March 26 – May 25, 2021)
Chart by IG (You can click on it for a larger image)
The expected weakness of the US Dollar can be seen, for example, in a bullish signal for EUR/USD[3].
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[4] this week, at the IG Client Sentiment page[5] on the DailyFX website[6], and at the IG Client Sentiment reports[7] that accompany it.
--- 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.
