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MENAFN- DailyFX) 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.
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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)
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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