Trader Sentiment Positive as US-China Trade Deal Nears | Webinar
Market sentiment analysis:
- Trader confidence remains high but, after the recent strong gains in “risk-on” asset prices, signs are emerging of some profit-taking.
- Retail trader positioning data suggest the outlook is bullish for many of the EUR crosses but bearish for crude oil.
Trader sentiment still positive
Traders continue to be optimistic about the outlook for riskier assets but their recent gains seem to be prompting some who were long to take their profits ahead of the expected signing Wednesday of a “Phase 1” US-China trade agreement. For example, as the chart below shows, EUR/USD is off its recent highs.
EUR/USD Price Chart, One-Hour Timeframe (January 9-14, 2020)
Chart by IG (You can click on it for a larger image)
Elsewhere, GBP/USD continues to head lower on growing speculation of an interest rate cut by the Bank of England.
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
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.