Risk appetite present on FX market, despite lower equities
The U.S. dollar and the Japanese yen are both lower in currency trading on the FX market. Even with equities moving lower today (after a three-day weekend in the U.S.), risk appetite seems to be present in forex trading right now.
The greenback gained against the euro in forex trading last week, but now the tables have turned. The U.S. dollar is down as optimism with regard to the global economy begins to return. The Japanese yen is falling in currency trading for much the same reason.
With economic stimulus measures in places around the world, there is hope that the recession may soon start to reverse. Especially helpful today has been reports of China’s output. Additionally, higher-yielding currencies are in favor due to the risk appetite situation. With the euro zone maintaining something other than a rate that is effectively zero, that helps.
The Canadian dollar and the Australian dollar are also both gaining against the U.S. dollar and the Japanese yen in currency trading.
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