Risk aversion reversing - FXStreet

FXStreet (Guatemala) - Valeria Bednarik, chief analyst at FXStreet explained that risk aversion eased further this Wednesday, with the dollar gaining ground during the first half of the day, amid a positive surprise coming from Chinese trade surplus, much better-than-expected.

Key Quotes:

"Risk sentiment reversed course after the second world's largest economy posted a surplus of CNY382bn, against the 338bn drop expected. Imports fell by 7.6% against a 11.5% decline expected, whilst exports also decrease much less than expected.

In Europe, data released was second line one, with the most notable news being Greece moving out of deflation, as the yearly CPI printed 0.4% in December, although it hardly affected the common currency."

Beige Book: Labor markets continue to improve, little wage and prices pressure

The US economy continued to expand at a modest pace according to the Beige Book. Activity expanded in 10 of the 12 Fed Districts since late November, boosted by consumer spending and a tightening labor market.
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USD/JPY breaks below 118.00 as US stocks extend losses

The yen gained momentum across the board amid risk aversion during the American session and trimmed losses; commodity currencies were also affected and dropped to fresh lows.
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