High yield vs Low yield curencies

ok....i just open topic High yield vs Low yield curencies because in forex not only we concern about technical....we also concern about fundamental..

so....how people react....

if....bad news come out...

of course FEAR come!!!!

so risk aversion is coming...

therefore we should buy low yield curencies (yen) and sell high yield curencies (AUD,NZD,etc....)

ok....lets together analysis the market reaction....

so....hope ur enjoy on this topic!!

ok this day we look Bad news from world bank about gdp..

so....fear come

risk aversion will occur

yen will strenghten!!!

stocks will tumble....


any ideas????

hi krunfx, you can also add the stock market to your fear barometer. The JPY pairs have dropped 200+ pips today and stocks are down 2-3% across the board right now.

yen strenghten make sotcks lower because....people start borrowing....


The dollar is broadly higher Monday morning as it advances against all major currencies except the yen in response to a more risk averse mood in markets. Uncertainty surrounding the outcome of the U.S. Federal Reserve's Open Market committee announcement on Wednesday is contributing to an uncertain mood among investors, which is is turn weighing on stocks and other riskier asset classes.
"We've seen the stock futures drifting steadily lower throughout our morning here in London and that's generally propped the dollar up against all the majors," said Adam Cole, chief currency strategist at RBC Capital Markets in ...