Market sentiment analysis:
- Trader confidence is returning on hopes that the worst of the coronavirus pandemic could be coming closer.
- However, there are few signs yet that the markets have hit rock bottom and it’s arguably too early to predict a full-scale recovery just yet.
Traders fear missing out on market rally
Traders are dipping their toes into the markets for risk-on assets like stocks, the Australian Dollar[1] and crude oil[2] as hopes grow that the worst of the coronavirus pandemic could be close. However, it remains too early to predict a full-scale recovery and a move away from safe havens such as the US Dollar[3] and cash.
US Dollar Index Price Chart, One-Hour Timeframe (April 1-7, 2020)
Chart by IG (You can click on it for a larger image)
What is FOMO in Trading? Characteristics of a FOMO Trader[4]
On the bright side, the spread of Covid-19 seems to be slowing, while central banks and governments continue to act to cushion its economic impact. However, a global recession – if not a depression – still seems inevitable.
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[5] this week, at the IG Client Sentiment page[6] on the DailyFX website[7], and at the IG Client Sentiment reports[8] that accompany it. You might also like to check out the DailyFX Trading Global Markets Decoded[9] podcasts.
--- Written by Martin Essex, Analyst and Editor
Feel free to contact me via the comments section below
https://www.dailyfx.com/?ref-author=essex
