hi, i dont really know how to gauge the market sentiment…how do i know the risk sentiment thats leading the market…thanks
Generally speaking, watch the market’s reaction to news events. A negative market won’t tend to react over much to good news, and vice versa.
Simplistically, see how the S&P index is doing and the US Dollar index. If there is risk appetite, S&P tends to go up and US Dollar index down. Higher yielding currencies like GBP tend to get stronger. This of course excludes fundamentals for each country and is a very simplistic check.