Risk Appetite Surges Powered by Gains in the Financial Sector Putting Pressure on the Dollar
Risk Appetite Surges Powered by Gains in the Financial Sector Putting Pressure on the Dollar
The dollar fell against all of the G10 sending the Sek, Chf, Nzd, Nok, and Aud considerably higher. Traders who were long the Euro benefited from a sharp move to upside of 240pips settling at the low range of 1.36. The sterling replicated a similar move against the dollar, as prices jumped over 200pips breaking through 1.52 as a previous resistance level. Commodities charged forward marking serious resilience in oil as the price rallied to $58bbl reintroducing the danger of rapid inflation. It is too early to scream recovery, but Investors clearly want to move past the pessimism and focus on opportunities in higher yielding assets. This trend of diminished risk aversion was apparent in bond yields as the 2yr tested 1.00%. We are likely to see a temporarily pullback after such strong moves, but brevity of price movement suggest there is some conviction on the short side of the dollar.
AC Markets
http://www.ac-markets.com
Disclaimer: This report has been prepared by AC Markets (thereof ACM) and is solely been published for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any currency or any other financial instrument. Views expressed in this report may be subject to change without prior notice and may differ or be contrary to opinions expressed by Salesperson or Traders of ACM at any given time. ACM is under no obligation to update or keep current the information herein, the report should not be regarded by recipients as a substitute for the exercise of their own judgment.
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