A rebound in the Shanghai Stock Index may have helped stall the unwinding of carry trades for the moment but it has also brought with it an unease over the perceived "more risky trades". At the latest publication the UBS risk aversion index fell to -0.39 (Vs -0.71 on Feb. 26).
Global risk aversion has ensued as a result and this has caused a move back towards yield and this given the Dollar the edge intraday. USD/CHF continues to look bid on dips with the 1.2220's now looking comfortable with the offers into 1.2245/50 now in sight above. Elsewhere, offers in EUR/CHF into 1.6140/50 continue to cap with a drop back below 1.6120 putting the cross on course to retest the 1.6095/6100 area.
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