Excerpt from: Forex Analysis
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| August 16, 2010 | | Forex trading with world currencies | Risk aversion is on the rise in currency trading on the FX market today. The latest news out of Japan is causing more apprehension about the global economic recovery, and that is resulting in an atmosphere of risk aversion.
Also contributing to worries about risk is the latest news out of Europe. Once again, there are increased concerns about sovereign debt. Spain and Ireland are raising red flags about their abilities to cope with debt, and that is adding to the concerns felt by forex traders.
As a result of this risk aversion, the Aussie is lower against the U.S. dollar, and the euro is running out low on steam. If it appears that the global economy really is headed into another recession, risk appetite is only going to diminish further.
| Topic Tags: currencies, currency trading, forex traders, forex trading, FX market, global economy, risk aversion, sovereign debt | |
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