The fallout from the failure of Silicon Valley Bank and Signature Bank is not over yet. What can we expect today? The ING economists signal that risks are tilted to the downside for the US dollar.
AUD and NZD still look attractive on a risk-on recovery
“We think the balance of risks is tilted towards another move lower in the dollar. The Fed and US regulators have taken decisive steps to restore confidence in the markets and they may be willing to do more (on the monetary side, when we talk of the Fed) if financial risks do not abate.”
“While it’s true that the rate move seems overblown, there is ample room for a rebound in risk sentiment, and FX is currently much more sensitive to equities than rates.”
“AUD and NZD continue to look attractive on a risk-on recovery.”
“Should stocks fail to rebound, the CHF and JPY could fare better.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
