Risky assets were able to find a base due to some encouraging words out of China . However, market sentiment remains fragile and could tip either way at any time. Summer markets at their finest. The theme of a rise and fall in risk appetite was consistent with our view of tentative sentiment in the market, where any change in recovery expectation would prompt traders to turn to the dollar in the… (more…)
Equity markets continue to plough higher, as the risk rally resumed after Wednesdays correction. Asian regional indexes traded higher, with the Nikkei break above 2009 highs. The Nikkei’s move put pressure on the JPY across the board, but especially against the commodity currencies. Risk sentiment is still the core driver to FX prices, which means traders will be monitoring equity markets for any… (more…)
With Asian and European equity markets trading higher, it seems like prophecies predicating a risk correction might have to wait another week. Overall, the events of this week are not expected to rock the risk correlated trade boat, although signs of a potential reversal are growing clearer. AUD continues to catch a bid on the 2 week uptrend and is now approaching the Long Term cup and handle… (more…)
The lack of new information has created a challenging task, to say something interesting. Market analysts can?t stop bad mouthing the recent rally, specifically in the equity markets yet risk appetite continues to improve. Global equity markets and commodities grind higher (along with risk corrolated fx trades), while the USD & JPY remain under pressure. Roughly 25%… (more…)