Market sentiment analysis:
- Trader confidence remains high in the markets, suggesting further losses for USD and continuing gains for stock prices and currencies like EUR, GBP and AUD.
- However, IG client sentiment data are warning that there could be a setback for equities.
Trader confidence high
Traders are still confident about market prices, with money continuing to flow into assets like stocks and currencies such as EUR, GBP and AUD at the expense of USD. This suggests further gains for trending markets including EUR/USD, GBP/USD and the Nasdaq 100.
Nasdaq 100 Price Chart, Daily Timeframe (March 6 – September 1, 2020)
Chart by IG (You can click on it for a larger image)
However, IG client positioning data are sending warning bearish signals for Wall Street and several other stock markets, as well as bullish signals for several EUR crosses.
Recommended by Martin Essex, MSTA
Improve your trading with IG Client Sentiment Data
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