Credit Agricole on FX Risk Index
At -0.8904 (vs -0.8691 last week) our Risk Index has moved a little further into risk-seeking territory but remains just above its 100-day moving average, which has flatlined. The coming week could decide whether we get a more decisive shift towards risk reduction or a move back to riskseeking behaviour. Our Risk Index remains in risk-seeking territory but has retreated above its trend in recent weeks. Often such a crossover signals a more prolonged retreat in risk. AI equities have sold off as investors were disappointed by the Q3 earnings season and grew concerned about the progress of the AI investment boom in the face of a Democrat-controlled US Congress. But sentiment has been supported by investors seeing a potential end to the US-lran conflict and so lower oil prices. Indications are that the US sees that the economic pressure of its blockade of Iranian oil exports is enough to pressure the Islamic Republic into a deal rather than use of military force.
At -0.8904 (vs -0.8691 last week) our Risk Index has moved a little further into risk-seeking territory but remains just above its 100-day moving average, which has flatlined. The coming week could decide whether we get a more decisive shift towards risk reduction or a move back to riskseeking behaviour. Our Risk Index remains in risk-seeking territory but has retreated above its trend in recent weeks. Often such a crossover signals a more prolonged retreat in risk.
AI equities have sold off as investors were disappointed by the Q3 earnings season and grew concerned about the progress of the AI investment boom in the face of a Democrat-controlled US Congress. But sentiment has been supported by investors seeing a potential end to the US-lran conflict and so lower oil prices. Indications are that the US sees that the economic pressure of its blockade of Iranian oil exports is enough to pressure the Islamic Republic into a deal rather than use of military force.