Risk sentiment improving

Frank Walbaum FX Strategies.Asia

lmportant news this week

Tue, 21st, 08:00 CET UK Claimant Count Change.
Wed, 22nd, 08:00 CET UK Consumer Price Index.
Thu, 23rd, 03:30 CET AU Employment Change.
Thu, 23rd, 14:15 CET EU ECB Interest Rate Decision.

Risk appetite improves as commodity currencies strengthen

The US Dollar remains firm, yet risk assets continue to perform well. Equity markets are extending their gains, with both the S&P 500 and Nasdaq maintaining positive momentum despite the stronger greenback. The resilience in stocks suggests investors remain confident in the economic outlook and corporate earnings, while expectations for stable central bank policy continue to support risk sentiment.
Precious metals are also trading higher, with both Gold and Silver showing the potential for further upside. The move indicates that investor demand remains healthy despite the stronger Dollar, supported by continued central bank buying and portfolio diversification. In cryptocurrencies, Bitcoin continues to recover, with most major altcoins following the move higher as confidence gradually returns to the digital asset space. Meanwhile, New Zealand inflation accelerated to 1.5%, supporting the New Zealand Dollar and reinforcing expectations that the RBNZ may remain cautious about easing policy. The Australian Dollar is also strengthening, adding to the constructive tone across risk-sensitive currencies.

Market talk

Overall market sentiment remains positive. Strength in the New Zealand and Australian Dollars suggests investors are becoming more comfortable increasing exposure to risk assets. A stable US Dollar combined with rising equities, stronger commodity currencies, and recovering cryptocurrencies paints a constructive picture for global markets. Attention will now shift to upcoming US economic data and central bank comments to determine whether the current rally can extend further or whether markets begin to consolidate after their recent gains.

Tendencies in the markets

Equities at support, USD stronger, BTC positive, oil strong, Silver weak, Gold sideways.

Author

Frank Walbaum

FX Strategies.Asia

Frank has been working in the TV business for several years. Acquiring his skills in Germany’s biggest broadcasting station, he then chose to work and live in Asia, which was in 2007.

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