Market Sentiment Improving on Vaccine Hopes | Webinar
Market sentiment analysis:
- Trader confidence is rising on hopes that an experimental Covid-19 vaccine could provide protection and news of plans for a €500 billion coronavirus recovery plan for the EU.
- A UK announcement of lower tariffs on imports post-Brexit is also helping, although worries about a potential trade dispute between Australia and China over barley could dampen confidence.
Traders more confident about risk assets
Traders are becoming more confident about the outlook for riskier assets after the US biotech company Moderna said its experimental Covid-19 vaccine produced protective antibodies in a small group of healthy volunteers. Sentiment was boosted too by news that France and Germany are planning a €500 billion coronavirus recovery fund for the EU, as well as by a UK announcement of lower import tariffs post Brexit.
These developments are outweighing concerns about a possible trade dispute between China and Australia over barley as well as an increase in the Covid-19 death toll in the UK.
AUD/USD Price Chart, 30-Minute Timeframe (May 15 – 19, 2020)
Chart by IG (You can click on it for a larger image)
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.
Interested in learning about leverage in the foreign exchanges? This report could help.
--- 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.