ANZ on low volatility, euphoric risk appetite - a 'toxic brew'

From ANZ's look ahead at next week (and beyond)

• FX volatility is testing unsustainably low levels, while market risk appetite remains euphoric. This is typically a toxic brew for sentiment and an amber alert for risk sensitive G10 currencies. This time, reaction functions are murkier - these currencies have not participated in the rally and while central banks remain dovish, amid renewed stability in global growth, the typical catalyst for a major breakout remains elusive. Despite this, the market is vulnerable to unexpected news and caution is warranted.

Yes, its difficult to see near tern catalyst (as ANZ say) - the comments above may apply for a few more weeks to come.