Giles Coghlan LLB, Lth, MA
Financial Source
Markets, like the sea, have different moods, and one setting that we would like to look at today is the risk-off mood.
In this video, I will show you how to recognise when the market is in a risk-off mood and also which currency pairs you will look to trade during the risk-off mood, and finally, and perhaps most importantly, which currency pairs you should look to avoid when the market is trading in the risk-off way.
Our products and commentary provides general advice that do not take into account your personal objectives, financial situation or needs. The content of this website must not be construed as personal advice.
Editors’ Picks
EUR/USD remains offered below 1.1800, looks at US data
EUR/USD is still trading on the defensive in the latter part of Thursday’s session, while the US Dollar maintains its bid bias as investors now gear up for Friday’s key release of the PCE data, advanced Q4 GDP prints and flash PMIs.
GBP/USD bounces off monthly lows near 1.3430
GBP/USD is sliding in tandem with its risk-sensitive peers, drifting back towards the 1.3430 area, its lowest levels in the month. The move reflects a firmer Greenback, supported by another round of solid US data and a somewhat divided FOMC Minutes.
USD/JPY sticks to gains near one-week top, above 155.00 on softer Japanese CPI
USD/JPY attracts some dip-buying following the release of Japan's soft consumer inflation figures, which tempers bets for an immediate BoJ rate hike and weighs on the Japanese Yen amid fiscal concerns. Apart from this, a bullish US Dollar keeps spot prices close to over a one-week top. However, a slight deterioration in the global risk sentiment might cap gains. Traders now look to the US Q4 GDP report and the crucial PCE Price Index for cues about Fed policy outlook amid rising bets for more rate cuts, which will drive the US Dollar and provide a fresh impetus to the currency pair.
Editors’ Picks
AUD/USD flat lines around mid-0.7000s as traders await US GDP, PCE data
AUD/USD holds steady around mid-0.7000s during the Asian session on Friday, just above a nearly two-week low touched the previous day, as traders keenly await the release of the Advance Q4 US GDP and the US PCE Price Index. The crucial data would provide more cues about the Fed's rate-cut path, which will drive the US Dollar and the currency pair. In the meantime, the RBA's hawkish stance might continue to act as a tailwind for the Aussie, though a softer risk tone acts as a headwind.
USD/JPY sticks to gains near one-week top, above 155.00 on softer Japanese CPI
USD/JPY attracts some dip-buying following the release of Japan's soft consumer inflation figures, which tempers bets for an immediate BoJ rate hike and weighs on the Japanese Yen amid fiscal concerns. Apart from this, a bullish US Dollar keeps spot prices close to over a one-week top. However, a slight deterioration in the global risk sentiment might cap gains. Traders now look to the US Q4 GDP report and the crucial PCE Price Index for cues about Fed policy outlook amid rising bets for more rate cuts, which will drive the US Dollar and provide a fresh impetus to the currency pair.
Gold drifts higher to near $5,000 on heightened US-Iran tensions
Gold price holds positive ground near $5,000 during the early Asian session on Friday. The precious metal edges higher as escalating tensions between the United States and Iran boost safe-haven demand. Traders brace for the preliminary reading of US Gross Domestic Product for the fourth quarter, the Personal Consumption Expenditures and the S&P Global Purchasing Managers Index data, which are due later on Friday.
Ethereum: Active addresses halt growth as US selling pressure eases
Ethereum network growth has declined after two months of explosive increase. US selling pressure has eased following an improvement in the Coinbase Premium Index. ETH extends its range-bound move below the $2,107 resistance and above $1,740 .
Hawkish Fed minutes and a market finding its footing
It was green across the board for US Stock market indexes at the close on Wednesday, with most S&P 500 names ending higher, adding 38 points (0.6%) to 6,881 overall. At the GICS sector level, energy led gains, followed by technology and consumer discretionary, while utilities and real estate posted the largest losses.
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