Market Sentiment Improves on Fear of Missing Out | Webinar
Market sentiment analysis:
- Trader confidence is returning on hopes that the worst of the coronavirus pandemic could be coming closer.
- However, there are few signs yet that the markets have hit rock bottom and it’s arguably too early to predict a full-scale recovery just yet.
Traders fear missing out on market rally
Traders are dipping their toes into the markets for risk-on assets like stocks, the Australian Dollar and crude oil as hopes grow that the worst of the coronavirus pandemic could be close. However, it remains too early to predict a full-scale recovery and a move away from safe havens such as the US Dollar and cash.
US Dollar Index Price Chart, One-Hour Timeframe (April 1-7, 2020)
Chart by IG (You can click on it for a larger image)
On the bright side, the spread of Covid-19 seems to be slowing, while central banks and governments continue to act to cushion its economic impact. However, a global recession – if not a depression – still seems inevitable.
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.