with an aversion to risk in a news release the negative U.S. dollars can be strengthened in pair USD / JPY? - Forex Questions and Answers - FXAnswer

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with an aversion to risk in a news release the negative U.S. dollars can be strengthened in pair USD / JPY?

with an aversion to risk in a news relase the negative U.S. dollars can be strengthened in pair USD / JPY?

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- Dfoliexx
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2 years ago

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1 Vote Risk aversion generally will cause traders to buy safe-haven currencies, such as the USD and JPY. If a news release is risk adverse in nature and it affects the USD, such as a higher unemployment rate, then we should see USD weaken against JPY as both are considered as safe haven currencies... However, if we were to trade AUD/USD or even EUR/USD, then USD could gain on the back of that negative news as funds flow into buying US Treasuries (which is the safest instrument in the world), thus making USD stronger... by Henry Liu 2 years ago by Henry Liu 2 years ago

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Risk aversion generally will cause traders to buy safe-haven currencies, such as the USD and JPY. If a news release is risk adverse in nature and it affects the USD, such as a higher unemployment rate, then we should see USD weaken against JPY as both are considered as safe haven currencies... However, if we were to trade AUD/USD or even EUR/USD, then USD could gain on the back of that negative news as funds flow into buying US Treasuries (which is the safest instrument in the world), thus making USD stronger...