Safe haven currencies fall on risk appetite
Right now, the pound and the euro have the upper hand in forex trading. Safe haven currencies are falling on the FX market as risk appetite reduces the need for capital preservation. Forex traders are becoming a little more eager for higher yields, and that is resulting in some movement away from safety and some dabbling with riskier currencies.
Action Forex has some highlights from early trading on the FX market:
- The USD/JPY hits 95.16 in early trade on the heels of an 11 day stock market rally, continued speculation of an easing global recession drains demand for the currencies
- The EUR/JPY staged to break out of its previous range with 3 week highs at 136.89 being challenged
- The GBP/USD may find support on improving housing markets, this week’s economic calendar will give insight as National Building Society forecasts an increase of 0.2%
- The CAD remains on a positive note vs. USD, hits 2008 levels as greater risk appetite for commodity based currencies is seen
- EUR/USD posts a 7 week high, rising 0.6% to 1.4298, its highest level since June
- AUD/USD opened in Asia at 0.8125 before filling a small technical gap at 0.8150, remains somewhat range bound between 0.8100 - 0.8200 despite bullish outlook from the RBA and support from global equity markets
0 comments:
Post a Comment