Video: Equities Soar but Dollar, Euro, Yen Show Little 'Risk' Response
• The S&P 500 posted its biggest rally in 12 months and volatility measures further caved
• Yet, the strong sentiment implied in this equities swell wasn't shared by FX and other markets
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Following its worst weekly tumble in over two years, US equities have extended their recovery to a fourth session and the best single-day climb in 12 months. Alongside, a drop in volatility measures, this looks like the makings of a recovery in investor sentiment. That said, there was little of the S&P 500 and Dow exuberance seen in other asset classes. Is the surge in equities a false harbinger or will it just take time for other markets to catch up? FX traders moving forward will have to assess broader sentiment trends against monetary policy forecasts as the economic docket fills out with key event risk. We look at both themes and their market influence in today's Trading Video.
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.