MARKET SENTIMENT ANALYSIS:
- Traders remain concerned about the limited progress on a US fiscal stimulus package, the upcoming US election and the renewed spread of the coronavirus in Europe.
- That is leading to many of the FX pairs trading in narrow ranges.
- However, IG client sentiment data are still sending bearish signals for several of the leading FX pairs.
SENTIMENT DATA SENDING BEARISH SIGNALS
Traders remain concerned about the continuing lack of agreement on a US fiscal stimulus package, the upcoming elections in the US and the second wave of the Covid-19 pandemic currently flowing through Europe. That is leading to many assets – including FX pairs, commodities and stock indexes – trading within narrow ranges.
However, IG client sentiment data – which track the positioning of retail traders – are still suggesting downward moves on the way for several currency pairs and crosses, including USD/JPY, AUD/USD and GBP/USD.