Market Sentiment Positive, AUD/USD, NZD/USD, EUR/USD all Firm | Webinar
Market sentiment analysis:
- Trader confidence is high on the US stimulus package, the EU-UK trade deal and the coronavirus vaccine rollout.
- That is benefiting currencies like AUD/USD, NZD/USD, EUR/USD and GBP/USD, as well as global stocks and oil prices.
- Once the current period of consolidation is over, further gains seem likely in the new year.
Traders positive on risk-on assets
Traders are positive on the outlook for riskier currency pairs like AUD/USD, NZD/USD, EUR/USD and GBP/USD, as well as stocks and oil, as confidence is lifted by the passage of the US stimulus package through Congress, the agreement on a post-Brexit trade deal between the EU and the UK, and the rollout of Covid-19 vaccines.
For now, a period of consolidation looks to be in place but the generally optimistic mood looks likely to lift asset prices further once trading volumes pick up in the new year – especially if the vaccines are shown to work well against the new coronavirus strains.
AUD/USD Price Chart, Daily Timeframe (August 17 – December 29, 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.