Market sentiment analysis:
- Trader confidence remains high on signs that the Federal Reserve may not, after all, signal a tightening of US monetary policy at this week’s Jackson Hole symposium because of the spread of the delta variant of coronavirus in the country.
- Fed Chair Jerome Powell is due to speak at 10am New York time / 3pm London time Friday at the conference, which will now be held online.
Traders still optimistic
Traders still remain broadly positive towards riskier assets as the spread of the delta variant of Covid-19 in the US increases the likelihood that Federal Reserve Chair Jerome Powell may not, after all, signal a tapering of US monetary policy when he speaks – virtually – at the Fed’s Jackson Hole symposium Friday.
EUR/USD, for example, remains in demand as traders shun safe havens like the US Dollar, although there were signs early Tuesday that Monday’s interest in risk assets like the Euro was beginning to wane.
EUR/USD Price Chart, 30 Minute Timeframe (August 20-24, 2021)
Source: IG (You can click on it for a larger image)
EUR/USD Trading Basics: What is EUR/USD And Why Trade It?
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.
— Written by Martin Essex, Analyst
Feel free to contact me on Twitter @MartinSEssex
Be the first to comment