The market took a whole week to assume risk-off sentiment. That was not a masterstroke in efficient information processing!

Of course, the market has now finally worked it out: USD and particularly CHF and more so Gold – in other words: the classic safe havens – were able to appreciate at the end of the week. 

Typically, such periods of risk-off are quite short-lived, but until the ground offensive of the Israeli army has started and while it is still unclear how the Arab states will react to this, it is still far too early to abandon risk-off again.