What is currency risk aversion

currency: Foreign exchange: Euro exchange rate increased significantly - risk aversion declines again

FRANKFURT (dpa-AFX) - The exchange rate of the euro recovered on Monday from its significant losses in the previous week. The European common currency was traded at 1.2855 US dollars in the afternoon. In Asian trading, the euro had temporarily fallen to $ 1.2735. The European Central Bank (ECB) had set the reference rate in the afternoon at 1.2820 (Friday: 1.2799) dollars. The dollar cost 0.7800 (0.7813) euros.

"The risk aversion on the markets has decreased again," said Ralf Umlauf, foreign exchange expert at Landesbank Hessen-Thüringen. This can also be seen in the slight price gains on the stock markets. The dollar is still being sought as a "safe haven" in a difficult environment. In the past few weeks, the gloomy economic outlook in the USA in particular had weighed on the euro. From a technical point of view, it was also decisive that the euro did not fall below the support of 1.2730 US dollars, which is important according to circulation, in early trading. After that, the euro recovered quickly and rose again above the $ 1.28 mark.

The weak data from the US housing market published in the afternoon trade, however, had hardly moved the foreign exchange market, said the foreign exchange expert. Last week, it became increasingly apparent that the US economy would recover more slowly than previously expected. Therefore, the clouded mood among US house builders was no longer a big surprise.

For other major currencies, the ECB set the reference rates for one euro at 0.82110 (0.82120) British pounds , 109.49 (109.78) Japanese yen and 1.3350 (1.3488) Swiss Francs fixed. The price for an ounce of gold was fixed in London at $ 1,223.50 (1,214.25) in the afternoon. The gold bar cost 30,380.00 (30,160.00) euros.

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