Market sentiment analysis:
- Trader confidence is holding up well, with stock indexes still advancing, but US Treasury yields are rising too, and so is the US Dollar.
- That is hurting assets like gold, while the oil market is waiting for this week’s meeting of OPEC+.
Trader confidence constructive
Traders remain broadly positive about the outlook for the markets, and that continues to benefit stocks. However, fears of inflation in the US are also lifting the yields on US Treasury notes and bonds, and that is hurting gold. Crude oil traders, meanwhile, are waiting for supply news from Thursday’s meeting of the OPEC producers and their allies, including Russia.
Among the pairs most affected by the stronger Dollar, USD/JPY is trending higher but IG client sentiment data are pointing to a reversal lower.
USD/JPY Price Chart, Daily Timeframe (October 19, 2020 – March 30, 2021)
Chart by IG (You can click on it for a larger image)
| Change in | Longs | Shorts | OI |
| Daily | 4% | 2% | 2% |
| Weekly | -8% | 6% | 3% |
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.
--- Written by Martin Essex, Analyst and Editor
Feel free to contact me on Twitter @MartinSEssex
