Is Risk Aversion Ready for a Comeback?

Sell-offs and more point to the possibility of risk aversion

Risk aversion may be ready to make a comeback on the forex market. Yesterday, signs of decreased appetite were in evidence as the U.S. stock market had trouble overcoming Monday's sell-off. Additionally, high beta currencies, sterling and euro, were falling in forex trading to the U.S. dollar.

Forex traders and other investors appear a little wary of the economic recovery and how things are going. This is a reason for caution. However, today might bring new optimism and a bit of risk appetite to the markets. One of the main influencers of today's financial markets will be the announcement expected from the Fed about the economy later today.