FTFM Risk on. Risk off. One of the biggest trends since March has been the “risk on” trade of buying stocks and selling the dollar and the opposite “risk off” moves when the dollar rallies. The two have been so close that a shift in one is like flicking a switch in the other.
With US stocks near 13-month highs and the dollar near 15-month lows, markets are wondering whether there is appetite to push either further.
