It seems like the market is trying to use any excuse it can find right now to be positive in the midst of an economic storm of epic proportions.
Recent economic data suggests that the world’s largest economies are facing a much bigger downturn and slowdown compared to the infamous Global Financial Crisis.
Some analysts have called the current economic contraction as the biggest recession in centuries. But, despite all of that, risk sentiment has seen lots of positive flows lately.
A big portion of the drop in Equity markets have been recovered in the past four weeks. However, a quick look at the history books of bear markets would encourage us not to count our chickens before they hatch.
This week’s major events have the potential to act as both a headwind and a tailwind for recent positivity. The big question is whether central bank policy will be enough to keep the positive mood going.
This week ahead video will help you prepare for this week’s upcoming events and provide insights into how you could possibly trade it as well.
Highlights of the video:
00:35 – Baseline context for risk sentiment
03:43 – Baseline expectations for the upcoming risk event
07:48 – Possible sentiment shifts
10:24 – Possible currency pairs to consider