Market sentiment analysis:
- Trader confidence has been lifted by the creation of coronavirus vaccines, hopes of economic and monetary support for the global economy and a strong Chinese manufacturing PMI for November.
- Bulls will be hoping it stays strong this month, which is often a positive one for risk assets, especially stocks.
Trader confidence high
Traders are increasingly confident that Monday’s dip in risk assets was merely caused by profit-taking after a strong November and that the advance will continue into December, which is often a strong month particularly for stock prices.
In the FX markets, currencies like the New Zealand Dollar, the Australian Dollar and the Canadian Dollar would all benefit, with NZD currently looking particularly firm.
NZD/USD Price Chart, Daily Timeframe (August 2 – December 1, 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
