FX market commentary: Risk aversion to trade reversed as Qaddafi considers stepping down
Ilya Spivak, Currency Strategist at FXCM comments:
“The risk aversion trade is swinging sharply in the opposite direction, with European shares following Asian bourses higher.
“The move follows a sharp drop in crude oil prices following reports that Libyan leader Muammar Qaddafi offered to conditionally step down as part of a truce deal with the rebels while several other OPEC countries pledged to join Saudi Arabia in boosting output.
“Qaddafi’s overture has yet to be confirmed however, much less accepted, so it remains to be seen whether current optimism will hold.
“Factory Orders headline the regional economic calendar, with the annual growth rate expected to fall to the lowest in four months, threatening to trim some of the recent optimism about growth in the Euro Zone core.”
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About the author:
Ilya Spivak is a Currency Strategist for DailyFX, the research arm of Forex Capital Markets LLC, where he applies a top-down, global macro approach to longer-term investing in the G10 currencies. Ilya has headlined seminars on FX trading around the world and his research is regularly cited in leading publications including the Wall Street Journal, MarketWatch and Reuters. He holds degrees in Economics and International Relations from the University of California.
About FXCM Inc.
FXCM Inc. (NYSE: FXCM) is a global online provider of foreign exchange (forex) trading and related services to retail and institutional customers world-wide. At the heart of FXCM’s client offering is No Dealing Desk forex trading. Clients benefit from FXCM’s large network of forex liquidity providers enabling FXCM to offer competitive spreads on major currency pairs. Clients have the advantage of mobile trading, one-click order execution and trading from real-time charts. FXCM’s U.K. subsidiary, Forex Capital Markets Limited, also offers CFD products with no re-quote trading and allows clients to trade oil, gold, silver and stock indices along with forex on one platform. In addition, FXCM offers educational courses on forex trading and provides free news and market research through DailyFX.com. Trading foreign exchange and CFDs on margin carries a high level of risk, and may not be suitable for all.
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