Market Sentiment Still Negative Towards EUR/USD, GBP/USD, AUD/USD | Webinar
Market sentiment analysis:
- Trader confidence in riskier assets such as stocks, the Australian Dollar, Sterling and the Euro remains weak and, although a near-term rally is possible, the longer-term outlook remains bleak.
- As for the traditional safe havens, the US dollar still seems the asset of choice rather than gold, silver, the Japanese Yen or the Swiss Franc.
Trader sentiment poor in stocks, risk off
Traders are continuing to shun riskier assets such as stocks and risk-on currencies like the Australian Dollar, Sterling and the Euro on fears of a second coronavirus lockdown in Europe, banking woes, delays in agreeing a fiscal stimulus program in the US and the vacancy on the US Supreme Court.
While a near-term bounce cannot be ruled out, the outlook for the next week or two remains poor, with even assets that are usually seen as safe havens, such as gold, the Japanese Yen and the Swiss Franc underperforming the US Dollar.
AUD/USD Price Chart, Daily Timeframe (June 23 – September 22, 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
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.