Risk sentiment improves as markets start the week strong

Frank Walbaum

Important news this week

Tue, 22nd, 05:10 CET AU RBA Gov Bullock Speech.
Thu, 24th, 03:30 CET AU Unemployment Rate.
Thu, 24th, 09:30 CET CH SNB Policy Rate.
Fri, 25th, 11:15 CET UK BoE Gov Bailey Speech.

Risk sentiment improves as markets start the week strong

The US Dollar Index is rising again after the weekend, with EUR and GBP weakening against the USD. The Australian Dollar is performing better, pointing to improving risk sentiment. Oil has moved below $94, removing some pressure from inflation expectations, while the S&P 500 and Nasdaq are moving higher. The Dow Jones and DAX are lagging behind.

Crypto is also positive, with Bitcoin moving higher and most altcoins following. Overall, the combination of stronger equities, rising crypto and AUD strength suggests that risk appetite is improving, despite the renewed strength of the US Dollar.

Market talk

The market enters a relatively quiet week after the recent central-bank decisions, with fewer major catalysts on the calendar. This could leave investors more focused on price action and broader risk sentiment rather than positioning around a major policy event. The combination of rising equities and crypto suggests that the market is currently more comfortable taking risk.
The Australian employment data will be one of the more important economic releases this week, particularly for AUD pairs and expectations around the RBA. The SNB rate decision is another central-bank event to watch. With fewer major US catalysts, movements in the Dollar and global risk assets could be driven more by technical levels and changes in sentiment.

Tendencies in the markets

Equities positive, USD stronger, crypto positive, oil lower, metals sideways, JPY weak.

Author

Frank Walbaum

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