Risk Appetite Takes Over Financial Markets

Significant improvement in global risk appetite gave many currencies like the AUD a much-needed boost.

The Dow Jones, NASDAQ and S&P 500 recorded considerable gains. The USD went down against most of its major counterparts. The AUD was the one that stood out with a 2-month high figure.

As expected, the EUR made some gains with better-than-expected German economic data. However, after the initial rally, it lost some of its gains but managed to regain the upward momentum.

Though there was no new information related to Brexit, the GBP still made some gains and consolidated just above 1.3350. However, with more information coming out on the Brexit front, the GBP could possibly become turbulent again.

The British Cabinet Minister reportedly said “the European Union needs to move as well” and sounded quite sanguine about it when he said “I hope that we will be able to secure a good deal with the European Union.”

While gold continues to struggle to keep its $1800 threshold, silver continued its bearish run for the second day in a row on Tuesday with bears eyeing another leg lower.

Vaccine optimism, promising economic data from the US, and easing US tension continue to remain highly influential factors in the financial market.

Source: https://www.axiory.com/market-news/risk-appetite-takes-over-financial-markets