Excerpt from: Forex Training
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| September 08, 2008 | | Risk appetite and forex trading | There are some different forces at work today in currency trading on the FX market. Risk appetite is one of the drivers of certain moves in forex trading. Today, low-yielders like the Japanese yen are heading lower in FX trading as the carry trade resumes.
Additionally, stock markets are expected to get a bit of a bump today, as the U.S. government takes over Fannie Mae and Freddie Mac. Worries that the two GSEs would fail, bringing down mortgage market entirely, have been assuaged.
The only real question is how long this state of affairs will last, since the U.S. government is potentially taking on even larger amounts of debt than it already has in order to make this work.
But for today, risk appetite has returned to forex trading.
| Topic Tags: carry trade, currency market, Fannie Mae, forex trading, Freddie Mac, FX market, FX trading, risk appetite forex trading, U.S. government, yen FX trading | |
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