risk aversion

Daily chart: US dollar against the yen after Greece, and Italy, and Spain the successive shocks of the debt crisis, investors psychological ability seems to get more "resistant". So when this week Portugal when the debt crisis highlights, instead, the euro exchange rate fluctuations relative gentle, euro-dollar exchange rate has not decreased significantly. On information highly sensitiveThis passivation occurs in the foreign exchange market, can be attributed to three main reasons: first, holiday effects, and second, risk aversion, and the third is excessive digestion. We talk about risk aversion. So-called risk aversion refers to when the market suffered large systemic risk, most people in order to avoid greater damage to property and fled a mood of the market. At present the foreign exchange market risk aversion is clearly heating up, On the one hand from the growing European debt crisis, which led by major non-US dollar currency flexibility in euros lower, while US investors to lose confidence in the dollar of the debt crisis, let alone the United States of quantitative easing monetary policy is inherently negative dollar. In the Forex market, risk aversion, warming will erupted in a or in the currency of a particular property. In other wordsMonetary mass popularity swtor power leveling, but surely there are currency sold off. In the Forex market in the past, the euro and Swiss francs belonging to hedge currency, in other words, once risk aversion rise, euro and Swiss franc will be influenced by investors. But now sold off mainly of currency is the euro, other currencies such as the Swiss franc, pound sterling, although declines, but weak trend. Are back in fashionCurrency exchange rate and market feedback, Yen. Dollar repeated testing new lows against the yen. At the same time, recent Japan's Finance Ministry intervened in excessive appreciation in the yen. ����Yen and Yen assets due to relative safety, became favorite of investors. In addition to the yen, another channel of risk aversion is gold. Despite fluctuations in gold prices, but on the whole has been high.Active buying high gold prices held steady, reflecting investors ' risk aversion become main factors influencing the decision. In the foreign exchange market next week, the market will pay more attention to economic data in Europe and the old republic power leveling, to this degree of judgment or analysis of economic deterioration. In addition, because this week Japan's Central Bank officials frequently made remarks on Yen, we can pay attention to Japan's Ministry of financeAdmission intervention again. Once admission interventions, short to consider homeopathic buying dollars against the yen, then consider buying the yen again.