Yesterday, global risk sentiment switched back to “risk on” as fears over an imminent military action in Syria have receded. Safe haven currencies came under selling pressure, as the riskier ones gained investors interest. Global stock indices ended in the green as well. The euro tumbled yesterday as the ECB minutes revealed concerns over the exchange rate.
Risk Appetite Improves as Fears Over an Imminent Action in Syria Receded
The dollar traded higher against most of its G10 peers on Thursday. The US currency gained the most against SEK, which collapsed after Sweden’s CPI data miss estimates, and the safe havens JPY and CHF. It traded lower only against GBP and the commodity-linked currencies AUD and NZD. The greenback traded virtually unchanged versus CAD.
The weakening of the safe havens and the strengthening of the riskier currencies suggest that global risk appetite has improved as we approach the closing of the week. Indeed, equity markets were a sea of green, while gold tumbled.
Read the full financial markets daily report on JFD Research.