Risk appetite may weigh on euro
Central banks everywhere have hinted that the economy will be supported by actions. Investors look forward to the coming of the “policy” market. Confidence of the investors has greatly increased and they are trying to enter back to the stock market. The whole market is also looking forward to the G7’s emergency conference call. It is also expected that governments around the world and central banks will jointly rescue the market. This news has further boosted the recent collapse of the stock market.
As financial market risk appetite recover, the EUR /USD may be under pressure. In the past period like last week, the euro had more signs to become one of the safe-haven currencies, attracted safe-haven buying during the last week’s “sell”.