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CNN's Fear and Greed Index

  • #1
  • First Post: Feb 4, 2016 2:45pm Feb 4, 2016 2:45pm
I've found this very interesting CNN's new meta index measuring current market sentiments of seven fear & greed indicators.

Here it is if anyone finds it useful: Fear & Greed Index

Greed: higher yielding currencies tend to do well (NZD, AUD)

Fear: JPY (because of carry trades unwinding) and USD (world reserve currency) tend to do well

EUR is somewhere in between, usually goes higher in extreme fear sentiment (investors panically selling riskier EU assets like stocks) at first
then loses against save haven currencies like USD and JPY (carry trades liquidation)
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  • #2
  • Feb 4, 2016 3:37pm Feb 4, 2016 3:37pm
Quoting Tom81
I've found this very interesting CNN's new meta index measuring current market sentiments of seven fear & greed indicators. Here it is if anyone finds it useful: Fear & Greed Index Greed: higher yielding currencies tend to do well (NZD, AUD) Fear: JPY (because of carry trades unwinding) and USD (world reserve currency) tend to do well EUR is somewhere in between, usually goes higher in extreme fear sentiment (investors panically selling riskier EU assets like stocks) at first then loses against...
this contradics what happen today in terms of USF
money ain't shit,i'm the shit..
  • #3
  • Edited 5:38pm Feb 4, 2016 5:22pm | Edited 5:38pm
Quoting roadtogo
{quote} this contradics what happen today in terms of USF

Today's USDollar index weakness was due to lowered FED interest rate hike expectation. New York Fed President William Dudley was very dowish on rate hike expectation this year ("One thing I think we can say with more confidence is that financial conditions are considerably tighter than they were at the time of the December meeting,"said Dudley - Reuters).

Investors have obviously already included future 2016 rate hikes into the price of USD and are now changing their minds. There are two major themes that drive prices on forex market, risk sentiment (risk aversion vs. greed) and central banks monetary policies. When time predictions of interest rate hikes, QE etc. unexpectedly change, we will see major price corrections.

IF S&P 500, Shanghai Composite, Nikkei, DAX etc. start strongly falling again, we will probably see USDollar Index rise again. In extreme fear conditions, risk aversion (flight to safe haven assets) always wins over higher yields.
  • #4
  • Last Post: Feb 5, 2016 2:40pm Feb 5, 2016 2:40pm
Quoting Tom81
{quote} Today's USDollar index weakness was due to lowered FED interest rate hike expectation. New York Fed President William Dudley was very dowish on rate hike expectation this year ("One thing I think we can say with more confidence is that financial conditions are considerably tighter than they were at the time of the December meeting,"said Dudley - Reuters). Investors have obviously already included future 2016 rate hikes into the price of USD and are now changing their minds. There are two major themes that drive prices on forex market, risk...
I think money flew away to oversold currencies and usd rise needs to be digested..there have been many investors eyeing a breakout for euro..I was thinking parity too early as a mistake

anyways, I dont think fed will ease their policy..market is well adapted to decemer rate hike and there will be more..
money ain't shit,i'm the shit..
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