Market sentiment analysis:
- Confidence in USD has been knocked by President Donald Trump’s comments expressing displeasure with US interest rate increases.
- Elsewhere in the markets, however, sentiment remains positive.
Our trading forecasts for Q3 have been published; you can find them here.
And check out the IG Client Sentiment data to help you trade profitably.
Trump comments hit USD sentiment
USD sentiment has been knocked by an interview in which US President Donald Trump said he was “not thrilled” with the interest rate increases by Federal Reserve Chair Jerome Powell. He also accused China and the EU of “manipulating” their currencies.
However, traders remain broadly confident about the markets in general, with AUDJPY rising. That cross is often seen as indicator of trading sentiment, strengthening when traders decide to increase their risk profiles and falling when risk aversion is the dominant theme.
Stock prices, also seen as an indicator of sentiment, are rising too and that theme is likely to persist for a while.
In this webinar I looked at these developments and at what to expect.
Resources to help you trade the forex markets
Whether you are a new or an experienced trader, at DailyFX we have many resources to help you: analytical and educational webinars hosted several times per day, trading guides to help you improve your trading performance, and one specifically for those who are new to forex. You can learn how to trade like an expert by reading our guide to the Traits of Successful Traders.
--- Written by Martin Essex, Analyst and Editor
Feel free to contact me via the comments section below, via email at martin.essex@ig.com or on Twitter @MartinSEssex
