Market sentiment analysis:
- Trader confidence has been boosted by optimism that a US stimulus package will be agreed and that the US vaccine program is now on track.
- However, the Euro is failing to benefit, with pairs like EUR/USD and EUR/GBP falling back.
Traders more confident
Traders are becoming more confident that US President Joe Biden will be able to push a sizeable stimulus package through Congress and that coronavirus vaccinations in the US are back on track – benefiting assets like stocks that are seen as more risky.
However, the Euro is failing to benefit, with EUR/GBP falling and EUR/USD dropping as well.
EUR/USD Price Chart, One-Hour Timeframe (January 27 – February 2, 2021)
Chart by IG (You can click on it for a larger image)
| Change in | Longs | Shorts | OI |
| Daily | 6% | 5% | 6% |
| Weekly | -7% | -5% | -6% |
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
