Market Sentiment Strong, Stocks Higher, Yet USD Firmer Too | Webinar

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Market sentiment analysis:

  • Traders remain very confident about the financial markets, with many of the major stock market indexes at record highs and no signs yet of a change in trend.
  • Oddly the US Dollar, which is seen as a safe haven, is stronger too, and the price of gold is even stronger, suggesting the simple “risk on/risk off” equation does not currently apply.

Trader confidence high

Trader confidence remains strong in the financial markets, with US stock indexes still close to their recent record highs, and new all-time highs recorded in several European markets. Moreover, there are few signs yet of a major correction, and even further gains seem likely.

Interestingly, the safe-haven US Dollar is in demand too, and the gold price is firmer still, pointing to a breakdown in the usual “risk on/risk off” dynamic and suggesting that individual markets are responding to idiosyncratic factors. Here too, there are few signals yet that a reversal is close.

US Dollar Index Price Chart, Daily Timeframe (May 20 – November 16, 2021)

Latest US Dollar Index price chart.

Chart by IG (You can click on it for a larger image)

How to Trade Gold: Top Gold Trading Strategies and Tips

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

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