Market sentiment analysis:
- Trader confidence is evenly balanced at the moment, with the Indian coronavirus outbreak offsetting progress in Europe, where borders may soon be opened.
- That has left traders concentrating on assets such as gold, and cryptocurrencies like Bitcoin and Ether.
Traders turn to alternative assets
Traders are currently concentrating on assets such as gold, Bitcoin and Ether as broadly balanced trading sentiment leads to sideways movements in many other markets. Overall, the worsening of the coronavirus outbreak in India is offsetting positive news elsewhere, with Europe progressing with its vaccination programs and beginning to open borders.
Also on the positive side, US and UK airlines and travel companies are pushing for US/UK travel restrictions to be lifted but that too is being offset by a global semi-conductor shortage that is worrying investors. As a result Ether, for example, continues to press higher.
Ether Price Chart, Daily Timeframe (February 23 – May 4, 2021)
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, stock and cryptocurrency 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 and Editor
Feel free to contact me on Twitter @MartinSEssex