Fannie, Freddie and the Currency Market
Risk appetite and forex tradingThere are some different forces at work today in currency trading on the FX market. Risk appetite is one of the drivers of assured moves in forex trading. Today, low-yielders like the Japanese yen are heading lower in FX trading as the carry trade resumes.
Additionally, stock markets are expected to get a bit of a bump today, as the U.S. government takes by Fannie Mae and Freddie Mac. Worries that the two GSEs would fail, bringing down mortgage market entirely, have
The only real question is how distant that state of affairs will last, since the U.S. government is potentially taking on even larger amounts of debt than it already has in order to produce that work.
But for today, risk appetite has returned to forex trading.
See Also
- More on U.S. Dollar Fundamentals in Currency Trading
FX trading ideas - Currency Trading on the FX Market
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Original post by Eric J. Fox