Risk Appetite in Capital Markets Returns as Fears Fades


The Japanese yen maintained a downtrend through last week and fared worse against commodity-based currencies as investors’ risk appetite increased.

That said, steady gains in benchmark yields, bullish rebounds in stocks, and varying central bank monetary policy expectations would continue to extend bearish pressure on the JPY. Meanwhile, impending rate hikes from the US Fed and Bank of England (BoE) did not save the dollar and Sterling from suffering bearish setbacks, as both currencies were among the weakest last week.

On the other hand, the Aussie and Kiwi ended the week as best performers amid a risk-appetite boom. Euro came in third place, although it began to show signs of weakness towards the end of the week. That said, development from the eurozone in the coming days should establish a path for the EUR, confirming if a sell-off would return.

Risk Appetite Climbs Despite Hawkish Fed Outlook

On the other side of the world, the US Fed began its monetary tightening campaign after implementing a 0.25% rate hike, bringing its prime lending rate to 0.50% last week. The Fed also noted that quantitative tightening will begin “at a coming meeting.” Fed Governor Christopher Waller added that he preferred a 0.50% rate increase but voted for 0.25% only because of the ongoing geopolitical events. This was likely the same view adopted by most FOMC members. However, this compromise creates the possibility of a more aggressive rate hike later in the year.

shutterstock 146839337 min

In other news, stocks traded positively last week, with the S&P 500 posting a significant rebound thereby breaking the critical 4416.7 resistance. Also, critical levels in the DOW (34179.07) and NASDAQ (13837.58) were defeated in the bullish resurgence last week.

Finally, the 10-year US bond yield spiked above the 2.065 high to restart a long-term upward trend last week, tapping the 2.246 high.


You can purchase Lucky Block here. Buy LBlock

  • Broker
  • Benefits
  • Min Deposit
  • Score
  • Visit Broker
  • 20% welcome bonus of upto $10,000
  • Minimum deposit $100
  • Verify your account before the bonus is credited
$100 Min Deposit
  • Award-winning Cryptocurrency trading platform
  • $100 minimum deposit,
  • FCA & Cysec regulated
$100 Min Deposit
  • Over 100 different financial products
  • Invest from as little as $10
  • Same-day withdrawal is possible
$100 Min Deposit
  • Award-winning Cryptocurrency trading platform
  • 14 Cryptoassets available to invest in
  • FCA & Cysec regulated
$200 Min Deposit

Highly volatile unregulated investment products. No EU investor protection.

  • Trade top Cryptos such as Bitcoin, Litecoin and Ethereum plus more
  • Zero commissions and no bank fees on transactions
  • Around the clock service with support in 14 languages
$100 Min Deposit
  • The Lowest Trading Costs
  • 50% Welcome Bonus
  • Award-winning 24 Hour Support
$200 Min Deposit
  • Fund Moneta Markets account with a minimum of $250
  • Opt in using the form to claim your 50% deposit bonus
$250 Min Deposit
Share with other traders!

Azeez Mustapha

Azeez Mustapha is a trading professional, currency analyst, signals strategist, and funds manager with over ten years of experience within the financial field. As a blogger and finance author, he helps investors understand complex financial concepts, improve their investing skills, and learn how to manage their money.