Market sentiment analysis:
- Trader confidence in GBP is falling as the EU and the UK argue over their relationship post-Brexit.
- At the same time, sentiment is souring towards US tech stocks, gold and oil, with USD the principal beneficiary.
Trader sentiment turns against GBP, gold, oil, tech stocks
Trader confidence in GBP is receding as the EU and the UK argue about their relationship once the Brexit transition period ends on December 31. At the same time, sentiment is souring towards gold, oil and US tech stocks – benefiting USD – as traders worry about rising levels of Covid-19 infections, the lack so far of an agreement on a fiscal boost for the US economy and plans to decouple the US and Chinese economies.
Nasdaq Price Chart, Daily Time Frame (June 1 – September 8, 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.
--- Written by Martin Essex, Analyst and Editor
Feel free to contact me on Twitter @MartinSEssex
