The financial world turned back to “risk on” yesterday, as tensions between the US and Iran subsided. US President Trump responded with sanctions instead of military action, while Iran’s foreign minister that their strikes “concluded” the response to the US attack. Barring any new flare-ups, risk sentiment may remain supported, but investors may adopt a somewhat more cautious stance ahead of tomorrow’s US employment data.
Equities Rebound, Safe Havens Slide, as Middle East Concerns Subside
The dollar traded higher or unchanged against all but one of the other G10 currencies on Wednesday and during the Asian morning Thursday. The greenback gained against JPY, CAD, CHF, and EUR, while it was found virtually unchanged against GBP, AUD, NZD and NOK. It slightly underperformed only versus SEK.
From “risk off” back to “risk on”. It seems that market sentiment has taken another 180-degree turn yesterday, with investors abandoning safe-haven assets and adding back to...
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