Market Sentiment Showing Few Signs of Recovering | Webinar
Market sentiment analysis:
- Trader confidence in stocks and commodities remains very weak, indicating that buying at these levels remains highly risky.
- However, some currencies are suffering more than others, providing opportunities for traders wishing to take advantage of the current market volatility.
Trader confidence in stocks still close to zero
Traders are still showing no confidence in stocks or commodities as the spread of the Covid-19 coronavirus continues to prompt fears of a global economic slowdown. Calling a bottom at current levels therefore remains highly risky.
However, currencies continue to provide opportunities for retail traders wishing to take advantage of market volatility, with the US Dollar continuing to advance even against other traditional safe havens such as the Japanese Yen, the Swiss Franc and gold.
USD/JPY Price Chart, Two-Hour Timeframe (March 6-17, 2020)
Chart by IG (You can click on it for a larger image)
Meanwhile, some currencies are weakening faster than others, with GBP for example dropping against the Euro.
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 this week, at the IG Client Sentiment page on the DailyFX website, and at the IG Client Sentiment reports that accompany it. You might also like to check out the DailyFX Trading Global Markets Decoded podcasts.
--- Written by Martin Essex, Analyst and Editor
Feel free to contact me via the comments section below
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.