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Investor Sentiment Shifting Toward Risk-Off Scenario

Discussion in 'Forex Daily News & Outlook' started by forextrends24, Jul 16, 2010.

  1. forextrends24

    forextrends24 New Member

    Mar 27, 2009
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    Today’s sample of Forex Analysis from ForexHound.com

    Forex investors did an about face from earlier in the week, ending the week by dumping higher risk assets. The sharp rise in the Yen and the sell-off in commodity-linked currencies is a strong sign that investors are shifting toward a risk-off trading strategy.

    The Euro surged to the upside shortly after the New York opening and before the release of U.S. economic data, briefly piercing the 1.30 level for the first time since early May.

    The last thrust to the upside in the Euro was in anticipation of weak U.S. economic data which has been the main driving force in the Euro this week. With traders anticipating bearish reports, the release of a weak consumer sentiment number as well as consumer price report became a “buy the rumor, sell the fact” scenario.

    Read full article at ForexHound.com as well more Forex Trading articles including Forex Technical Analysis and Forex Education

    Disclaimer: Trading foreign exchange on the margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore should not invest money that you cannot afford to lose.

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