Risk Appetite Out in Force in Forex Trading
by Trader Rich
High beta currencies move higher on the forex market
Risk appetite is making a major comeback in forex trading on the currency market this morning. High beta currencies are heading higher, thanks to help from optimism from investors. GFT’s Boris Schlossberg reports in FX360 on the incidence of improved risk appetite:
Risk appetite returned with a vengeance on the first night of trade this week with EUR/USD taking out the 1.4200 handle as it hit highs not seen in more than a month while cable rose to take out barriers at the 1.6500 figure. Positive equity performance in both Asia and Europe along with news that CIT may be able to avoid bankruptcy helped to revive risk appetite in high beta FX and push the currencies to the top of their recent ranges.
The sterling and the euro are both moving higher in forex trading on the news. The currency market is embracing the news that stock markets are higher in Asia and Europe, and that the U.S. stock market appears to be rallying out of the gate, thanks to recent CIT news. With this much optimism, it appears that the need for the U.S. dollar as a safe haven investment has been limited.
- Euro in Forex Trading
Risk appetite and the currency market