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Waning Risk Sentiment Drags Equities, Boosts Dollar

CROSS ASSET
  • Early fade in the USD has now fully reversed, with the USD Index recovering firmly off lows to wholly reverse the 30 pip rally in GBP/USD, EUR/USD and others.
  • Greenback strength returning in force as equities fade fast following the European open, as support for European banks provides only brief support for headline indices.
  • No headlines or newsflow behind this reversal in equity prices, but underscores that the ebb and flow of risk sentiment remains the key driver for assets here.

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