Hi, i here terms like Risk-OFF and flight to safety and risk-averse... what pairs are risk and which pairs are risk-off or does Risk-OFF refer to something else entirely??
THanks
THanks
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DislikedHi, i here terms like Risk-OFF and flight to safety and risk-averse... what pairs are risk and which pairs are risk-off or does Risk-OFF refer to something else entirely??
THanksIgnored
DislikedEquity markets are the traditional safe investment. Based on growth, the idea is the value always goes up. Don't ask me why - it's barmy, but that's another subject.
When equity (and other investment) markets fall something kicks in called risk aversion. Equity is sold and becomes cash. Usually that cash is converted to USD or YEN, the preferred funding currencies. So, risk off leads to a fall in value of funding currencies because there is less demand. Flight to safety usually means US Dollar, Yen and Gold increasing in value.Ignored