WHAT IS SENTIMENT?

What is sentiment?

Risk-off and Risk-on

In financial markets, when there is a risk in the economy or geopolitical situation (conflict between countries; war), the so-called risk- off means that investors do not take risks and the demand for safe assets increases, and risk assets with Sales pressure is encountered.
And if the economic and geopolitical conditions are normal, investors will move to risky assets, which in reform is called risk-on, which increases the demand for risky assets.
Secure assets include bonds, gold, Japanese yen, Swiss francs and US dollars, which are in high demand for risk-off.
Risk assets include stocks and industrial indices as well as cryptocurrencies and the Australian dollar, the New Zealand dollar, the Canadian dollar (although oil prices can prevent the Canadian dollar from weakening), the British pound and the euro.
The mix sentiment can be a combination of the above
it should be noted that sometimes the euro can be strong in risk aversion.
This will be explained in more detail in future posts