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Market Sentiment Data Point to Further USD Weakness Ahead | Webinar

Market Sentiment Data Point to Further USD Weakness Ahead | Webinar

Martin Essex, MSTA, Analyst

Market sentiment analysis:

  • Trader confidence remains high, with the safe-haven US Dollar dropping but stocks still at or near their record highs.
  • Moreover IG client sentiment data suggest further losses ahead for USD.
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Trader confidence still positive

Traders continue to buy into riskier assets like stocks as comments from central bank officials point to a lack of concern about inflation despite a global economic recovery, suggesting interest rates will remain low for the foreseeable future.

While stocks rise, losses for the safe-haven USD persist and IG client positioning data point to further weakness ahead for the Greenback.

US Dollar Index Price Chart, Four-Hour Timeframe (March 26 – May 25, 2021)

Market Sentiment Data Point to Further USD Weakness Ahead | Webinar

Chart by IG (You can click on it for a larger image)

The expected weakness of the US Dollar can be seen, for example, in a bullish signal for EUR/USD.

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

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

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