Market sentiment remained subdued yesterday, with major global stock indices being a see of red. Apart from the less-dovish-than-expected FOMC decision, the increasing likelihood over a partial US government shutdown tonight may have also weighed on investors’ morale. Among the G10 currencies, SEK was the big winner after the Riksbank increase rates for the first time since 2011. The pound remained unfazed after the BoE’s own rate decision.
Markets Stay in ‘Risk Off’ Mode; Riksbank Hikes Rates, BoE Stands Pat
The dollar traded lower against all but one of the other G10 currencies on Thursday, with the main winners being SEK, JPY and CHF in that order. The only currency that failed to gain against the greenback was CAD, with USD/CAD found virtually unchanged this morning.
The greenback came under strong selling interest yesterday, with no apparent reason. However, the broader risk appetite remained...
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