Market Sentiment Poor: Gold, JPY May Climb Further on Risk Aversion | Webinar
Market sentiment analysis:
- Trader confidence remains low, suggesting further gains for safe havens, with Gold and the Japanese Yen outperforming even the US Dollar.
- Among the currencies that may continue to underperform are the British Pound, the Australian Dollar and the Canadian Dollar.
Trader confidence ebbs away
Traders are becoming increasingly concerned about the spread of the delta variant of Covid-19 and its likely impact on the global economy. As a result, stocks and risk-on currencies like AUD, CAD and GBP may continue to slide against assets seen as less risky such as Gold, JPY and USD.
The impact so far can been seen, for example, in AUD/JPY, where there is no sign yet of its slide lower coming to an end.
AUD/JPY Price Chart, Daily Timeframe (January 7 – July 20, 2021)
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.
--- 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.