Market Sentiment Turning Positive Again After Correction Lower | Webinar
Market sentiment analysis:
- Trader confidence has been boosted by China’s economic growth data, released Monday, which has largely shaken off concerns that Joe Biden might tighten regulation in the US, that there could be violence at his inauguration and that his stimulus program could be held up by Congress.
- With Janet Yellen expected to recommend a large stimulus package at her Senate confirmation hearing, market sentiment has begun to improve once more.
Trader confidence returns
Traders are becoming confident again after several days of worry that US President-elect Joe Biden could tighten financial market regulation, that there could be violence at his inauguration Wednesday and that his proposed stimulus program might have trouble passing through Congress.
These worries have largely been dissipated by China’s data release Monday showing that its GDP growth rate in the fourth quarter of last year was above expectations at 6.5% year/year and by reports that Janet Yellen, the former Chair of the Federal Reserve, will press for a large stimulus package at a Senate hearing to confirm her new role as Treasury Secretary.
This return of confidence can be seen, for example, in the EUR/USD chart.
EUR/USD Price Chart, Daily Timeframe (October 9, 2020 – January 19, 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. 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.