Risk appetite trends still remain subdued – Danske Bank

Jens Pedersen, Chief Analyst at Danske Bank, assessed the prospects of risk appetite trends.

Key Quotes

“USD recovered some of its losses last night as the Trump administration struck a deal with the Democrats on Harvey aid and a suspension of the debt limit until mid-December”.

“EUR/USD initially dropped from 1.1950 to 1.1910 and USD/JPY bounced from 118.75 to 119.40 on the news. The relatively muted reaction in FX markets probably reflects that the market’s expectations of a US government shutdown and default were relatively low, but also reflects the still subdued risk appetite in markets due to the concerns about the US-North Korea tensions”.