11-03-2009, 10:40 AM
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FX Analyst
Superior Master Contributor and Member
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Join Date: Feb 2007
Posts: 847
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Risk Aversion Strengthens U.S. Dollar in Currency Trading
Greenback heads higher in forex trading The U.S. dollar is strengthening in currency trading on the FX market this morning as risk aversion sets in. With equities falling around the world, concerns about the financial sector taking center stage, and with the economic recovery moving in fits and starts, it is little surprise that forex traders have little risk appetite.
Not only that, but the RBA rate announcement was accompanied by some dovish language that did not sit well with many forex traders. The sterling is lower as the British financial sector continues to struggle, and forex traders are looking for safety.
As a result, the U.S. dollar -- the most stable currency in the world -- is being favored. Investors are looking for a safe haven investment and buying the U.S. dollar in currency trading as a result.
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