Market sentiment analysis:
- Trader confidence is improving on hopes that the coronavirus outbreak may be close to its peak.
- However, the strength of the US Dollar is starting to dominate business ahead of this week’s testimony to Congress by Fed chair Jay Powell.
Trading dominated by coronavirus, USD strength
Market trading is still focused on the coronavirus outbreak, with hopes rising after China’s senior medical adviser said Tuesday that coronavirus infections in the country may be over by April. However, the strength of the US Dollar is fast becoming the dominant theme as the US economy shows signs of strength ahead of this week’s testimony to Congress by Federal Reserve Chair Jay Powell.
As an example, EUR/USD is continuing to fall steeply, with little sign yet of a change in trend.
EUR/USD Price Chart, Four-Hour Timeframe (January 1 – February 11, 2020)
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.
Data provided by
of clients are net long.
of clients are net short.
— Written by Martin Essex, Analyst and Editor
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