218575 Resource 119247 120646 120646 1227189048519 1227189048519 Controlled High Yield Currencies Struggle on FX Market

Aussie, kiwi drop in currency trading

<font size="2"><span style="font-family: verdana,arial,helvetica,sans-serif;">High <a href="http://www.marketwatch.com/news/story/story.aspx?guid={2EB60045-2CBF-4515-8324-B4F5C967F258}&siteid=rss" target="_blank" title="Aussie currency trading, kiwi currency trading, high yield currencies, currencies FX market, forex trader, global recession, risk appetite">yield currencies are struggling right now on the FX market</a>. The Aussie and the kiwi -- the <a href="item/218387" target="_blank" title="Aussie currency trading, kiwi currency trading, high yield currencies, currencies FX market, forex trader, global recession, risk appetite">down under currencies</a> -- are prime examples of what can happen in currency trading when risk aversion and global recession set in.</span><br style="font-family: verdana,arial,helvetica,sans-serif;" /><br style="font-family: verdana,arial,helvetica,sans-serif;" /><span style="font-family: verdana,arial,helvetica,sans-serif;">For the most part, high yield currencies are those that benefit when risk appetite is strong. Because they have a higher yield, lower yielding currencies are borrowed in order to fund their purchase. The forex trader can then make money on the difference in interest yields.</span><br style="font-family: verdana,arial,helvetica,sans-serif;" /><br style="font-family: verdana,arial,helvetica,sans-serif;" /><span style="font-family: verdana,arial,helvetica,sans-serif;">This maneuver is known as the carry trade, and it is considered risky. When confidence in the market is falling, such risky moves are the first abandoned, and high yielding currencies no longer benefit from them.</span><br style="font-family: verdana,arial,helvetica,sans-serif;" /><br style="font-family: verdana,arial,helvetica,sans-serif;" /><span style="font-family: verdana,arial,helvetica,sans-serif;">Aussie and kiwi are experiencing this in currency trading right now, and both have fallen quite far on the FX market since the beginning of the year.</span></font><br /> 9 application/xml false Aussie currency trading currencies FX market forex trader global recession high yield currencies kiwi currency trading risk appetite High yield currencies and more in FX trading http://www.gftforex.com/land/index.asp?aid=446 Mozilla/5.0 (Macintosh; U; Intel Mac OS X 10.5; en-US; rv:1.9.0.4) Gecko/2008102920 Firefox/3.0.4 127.0.0.1 127.0.0.1 mmarquit 66.182.71.19 false true false false true 119247 blog blogsite/GFTForex/web