Market sentiment analysis:
- Trading sentiment has been hit hard by the tit-for-tat tariffs imposed by the US and China.
- That is damaging global stocks while benefiting the markets’ traditional safe havens.
US-China trade war in focus
The imposition of new tariffs by the US on Chinese goods, and the Chinese threat of retaliation, are leading to risk-off moves in the markets, with the Japanese Yen and US Treasuries the principal beneficiaries while gold and bitcoin are in demand too, albeit less so. By contrast, money continues to flow out of global stocks.
AUDJPY Price Chart, Daily Timeframe (February 21 – May 14, 2019)
Chart by IG (You can click on it for a larger image)
In this webinar, I looked at the charts of the assets affected, at the important sentiment releases on this week’s calendar and at the IG client positioning data.
Resources to help you trade the markets:
Whether you are a new or an experienced trader, at DailyFX we have many resources to help you:
— Written by Martin Essex, Analyst and Editor