News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
EUR/USD
Mixed
Oil - US Crude
Bearish
Wall Street
Mixed
Gold
Bearish
GBP/USD
Mixed
USD/JPY
Bullish
More View more
Real Time News
  • It’s important for traders to be familiar with FX spreads as they are the primary cost of trading currencies. Understand a pair's spread here: https://t.co/zEEUHZBx7g https://t.co/D6pqxwS0eY
  • Coming up at half past the hour... my free webinar on market sentiment. Do join me if you can. You can sign up here: https://www.dailyfx.com/webinars #sentiment
  • 💶 Inflation Rate MoM Flash (FEB) Actual: 0.2% Previous: 0.2% https://www.dailyfx.com/economic-calendar#2021-03-02
  • 💶 Inflation Rate YoY Flash (FEB) Actual: 0.9% Expected: 0.9% Previous: 0.9% https://www.dailyfx.com/economic-calendar#2021-03-02
  • 💶 Core Inflation Rate YoY Flash (FEB) Actual: 1.1% Expected: 1.1% Previous: 1.4% https://www.dailyfx.com/economic-calendar#2021-03-02
  • Italy will likely seek more stimulus as the outlook for coronavirus worsens $EUR
  • Heads Up:💶 Inflation Rate MoM Flash (FEB) due at 10:00 GMT (15min) Previous: 0.2% https://www.dailyfx.com/economic-calendar#2021-03-02
  • Heads Up:💶 Inflation Rate YoY Flash (FEB) due at 10:00 GMT (15min) Expected: 0.9% Previous: 0.9% https://www.dailyfx.com/economic-calendar#2021-03-02
  • Heads Up:💶 Core Inflation Rate YoY Flash (FEB) due at 10:00 GMT (15min) Expected: 1.1% Previous: 1.4% https://www.dailyfx.com/economic-calendar#2021-03-02
  • There are three major forex trading sessions which comprise the 24-hour market: the London session, the US session and the Asian session. Learn about the characteristics of each session here: https://t.co/reRmDe1Ksp https://t.co/T9BBM1nQ5d
Risk Transmission Feeding Through Developed, Emerging, Frontier Markets

Risk Transmission Feeding Through Developed, Emerging, Frontier Markets

John Kicklighter, Chief Strategist

Talking Points:

• Investor sentiment is key to the direction and momentum behind capital flows

• There are many benchmarks for the 'risk' and 'haven' extremes of sentiment - like the S&P 500 and USDollar

• Another means for seeing fear or greed spread through the financial system is comparing market tiers

Want to develop a more in-depth knowledge on the market and strategies? Check out the DailyFX Trading Guides we have produced on a range of topics.

The S&P 500 is a good measure of general market sentiment, but it is not particularly sensitive to early sea changes. Different asset classes have a different risk profile and thereby vulnerability to advance feelings of uncertainty. Generally speaking, the illiquid and higher yielding asset types provide the early warning system to confidence shifts; but there are other ways to measure the transmission of building fear or greed. One particularly good comparison to exploit is the performance through regional economic tiers. We have prime developed economies (like the US), developed markets, emerging markets and frontier markets. Their risk sensitivity intensifies down the scale. And, looking at their performance over the past few years; there may be reason for concern if we are passive bulls. We delve into this risk analysis in today's Strategy Video.

THERE'S A STRONGER SIGNAL OF RISK THAN JUST SPX SLIPPING

Sign up for John’s email distribution list, here.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES