Glossary Term


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Sentiment refers to the amalgamation of feelings, attitudes, thoughts and beliefs that investors, traders, analysts and experts have on the market. Terms associated with sentiment are bullish, bearish, hawkish and dovish. These adjectives speak the positive or negative nature of market sentiment – whether partakers think things will improve or get worse. Bullish and hawkish have positive connotations whereas bearish and dovish negative ones. A good example oh how sentiment works took place in 2012 when ECB president Mario Draghi, speaking at a conference in London, pledged to do ‘whatever it takes’ to save the Euro. The content of his speech propelled the euro to rally as market participants based their opinions and trades on Draghi’s speech.

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