##{"id":58783,"date":"2011-09-02T11:03:54","date_gmt":"2011-09-02T01:03:54","guid":{"rendered":"http:\/\/www.fnarena.com\/index.php\/2011\/09\/02\/some-currencies-are-riskier-than-others\/"},"modified":"2011-09-02T11:03:54","modified_gmt":"2011-09-02T01:03:54","slug":"some-currencies-are-riskier-than-others","status":"publish","type":"post","link":"https:\/\/staging.fnarena.com\/index.php\/2011\/09\/02\/some-currencies-are-riskier-than-others\/","title":{"rendered":"Some Currencies Are Riskier Than Others…."},"content":{"rendered":"

\n\tBy Kathleen Brooks, Research Director UK EMEA<\/span>, FOREX.com<\/span><\/p>\n

\n\tThe euro and the Aussie are often considered the risky end of the FX spectrum. However, the Aussie is currently more sensitive to the QEIII-inspired<\/span> risk rally than the euro. The chart below shows EURUSD<\/span> (white line) and AUDUSD<\/span> (orange line), as you can see the pair usually trades closely together, but they have diverged in the past couple of days.<\/p>\n

\n\t $\"\"$ <\/p>\n

\n\tThere are a couple of reasons for this:<\/p>\n

\n\t1, EURUSD<\/span> may be struggling to gain traction in the face of month-end dollar demand. If this is the case then upward pressure on the dollar should ease off from tomorrow.<\/p>\n

\n\t2, The QEIII-expectant<\/span> risk-rally offers more upside to the Aussie than it does to the euro. The correlation between AUDUSD<\/span> and the S&P 500 is 85% since the start of July, rising to 92.6% since the start of August. The correlation between EURUSD<\/span> and the S&P 500 is not as strong – at 70% since July and 72% since August.<\/p>\n

\n\tSo the Aussie may benefit more from the wave of QEIII<\/span> euphoria than the euro. However, this also means that it may be a more volatile ride for the Aussie going forward, and if we see lurches in market sentiment the Aussie is likely to be more exposed than the euro.<\/p>\n

\n\tWe will keep our eye on this one….<\/p>\n

\n\tThe views expressed are the author's, not FNArena's<\/span>.<\/p>\n

\n\tDisclaimer: The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD<\/span> contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.<\/p>\n

\n\tForeign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S<\/span>. Commodity Exchange Act. Contracts for Difference (CFDs<\/span>) are not available for US residents. Before deciding to trade forex<\/span>, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses<\/span>, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that FOREX.com<\/span> is not rendering investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. FOREX.com<\/span> is regulated by the Commodity Futures Trading Commission (CFTC<\/span>) in the US, by the Financial Services Authority (FSA) in the UK, the Australian Securities and Investment Commission (ASIC<\/span>) in Australia, and the Financial Services Agency (FSA) in Japan.<\/p>\n

\n\tTechnical limitations<\/strong><\/p>\n

\n\tIf you are reading this story through a third party distribution channel and you cannot see charts included<\/span>, we apologise<\/span><\/span>, but technical limitations are to blame.<\/em><\/strong><\/p>\n

\n\tFind out why FNArena<\/span> subscribers like the service so much: "Your Feedback (Thank You)<\/a>" – Warning this story contains unashamedly positive feedback on the service provided.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"