Risk Continues its Run and the Dollar Its Dive, Reversal Threat High
US equities rallied Wednesday and carried the other risk-sensitive assets along with it. Sensitive pairs like AUDUSD were eager to participate in the move, but there was a notable lack of conviction from the world's most liquid currency pairing: EURUSD. This divergence suggests the influence of risk appetite itself is fading, opening the risk to a reversal. There are few points for which risk appetite can find a strong fundamental push, while there is plent of reason for doubt. Even if sentiment is balanced, the strong risk move from the first half of this week can be exposed to a natural correction. So where will bulls look to keep the move going? Stimulus. We cover risk, stimulus expectations and more in today's video.