Sentiment Caught Between Virus Hopes and Fears | Webinar

Market sentiment analysis:

• Traders are not confident that a second coronavirus outbreak can be avoided despite a boost to sentiment from an easing of coronavirus restrictions in many countries.
• The result is that many markets are moving sideways within narrow trading ranges.

Trader confidence in neutral

Trader confidence is being buffeted by hopes on one side that an easing of coronavirus restrictions in many countries could lead to an economic recovery and fears on the other that if they are lifted too soon there could be a resurgence of infections.

As a result, most major currency, stock and commodity markets are trading sideways within narrow trading ranges awaiting further news. One exception is AUD/JPY, which continues to trend higher.

AUD/JPY Price Chart, Daily Timeframe (February 3 – May 12, 2020)

Chart by IG (You can click on it for a larger image)

Moreover, there is currently a bullish signal from IG client sentiment data for AUD/JPY that suggests the uptrend could continue.

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.

Why trade forex? Whether to use fundamental or technical analysis? Check out this article and video to find out.

--- Written by Martin Essex, Analyst and Editor

Feel free to contact me via the comments section below