Why does EUR/USD drop when US economic figures disappoint? This is not normal. But we are not in normal times. Here is an explanation of these phenomenons, also known as “risk aversion” and “risk appetite”. Since the big financial crisis erupted in the fall of 2008, there have been many such absurd period. The current summer of 2011, which includes an escalating European debt crisis that approaches the core, an unprecedented downgrade of the US and fears of a global recession, is a time when these abnormal phenomenons happen all the time, the “new normal” if you wish. How does it work? US Indicators Lead In normal ... (full story)