Risk aversion climbs in forex trading
For the first time in three weeks, jobless claims have fallen. But this news has failed to provide a kick-start for the stock market. Indeed, even with the announcement of a slightly improving job market (or at least one that isn’t getting any worse), risk aversion is on the rise.
MarketWatch reports on the reasons that the jobless claims data is not helping much this morning:
Although claims have fallen below the 600,000 level that prevailed earlier this year, economists are disappointed with the pace of improvement in the data. Many analysts, including top Federal Reserve officials, now think it is likely that the recovery will be "jobless" as businesses hold off hiring until the economic expansion is assured.
Forex trading is seeing its own results from increased risk aversion. Safe haven currencies are on the rise today, benefiting from the recent desire toward capital preservation and a drawback of risk.
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