Risk appetite got boosted yesterday, a reaction reflecting investors’ relief after the US midterm elections. Overnight, the RBNZ stood pat, with Governor Orr keeping the prospect of a rate cut on the table. The central bank torch is now passed to the FOMC, which decides on policy later today. Expectations are for officials to remain on hold, but we expect them to keep the door wide open for a December hike.
Risk Appetite Gets Boosted After US Elections, Fed Decides on Policy
The dollar traded mixed against the other G10 currencies on Wednesday. It gained against JPY, EUR and CHF in that order, while it underperformed against AUD and NZD. The dollar traded virtually unchanged against GBP, CAD, NOK and SEK.
The weakening of the safe havens JPY and CHF and the strengthening of the commodity-linked AUD and NZD suggest a boost in investors’ risk appetite. Indeed, EU and US stock indices were a...
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