Markets remain vigilant on risk trends – Danske Bank

Jens Sorensen, Chief Analyst at Danske Bank, suggested the broader risk appetite trends should be a key driver this week.

Key Quotes

“Given the fairly uneventful data calendar this week, global risk appetite is likely to set the tone for FX markets with most notably USD/JPY vulnerable to sentiment shifts. For now, we still see the balance of risks skewed for more USD/JPY downside even if positioning recently has become more balanced”.

“EUR/USD remains caught between counteracting factors (relative rates, flows, risk appetite) and we still pencil in a range bound cross in the months to come”.