Market sentiment analysis:
- Trader confidence remains high but no big move either way is likely until the White House and Congress agree, or fail to agree, on a package to help the US economy recover from the coronavirus pandemic.
- The ISM manufacturing index was well received and both the gold price and the Nasdaq remain near their record highs but the oil price will suffer if output is increased.
Traders still confident
Traders remain broadly optimistic about market prices, with gold and the Nasdaq both still near their record highs, but much will depend on whether the White House and Congress can agree on another package to help the US economy recover from the coronavirus pandemic.
The Institute for Supply Management (ISM) index for the US manufacturing sector in July was well received, helping many of the markets, but crude oil sentiment is less bullish as traders watch out for a possible increase in output.
US Crude Oil Price Chart, Daily Timeframe (April 3 – August 4, 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.
You can also read more here about how sentiment affects the FX market
--- Written by Martin Essex, Analyst and Editor
Feel free to contact me on Twitter @MartinSEssex
