19.08 - unexplained risk hunger threatens EUR/USD
- by Anna K.
Despite the fact that the situation in the world is not nearly as firm, and stable as we need it to be, it seems that traders are willing to risk in order to feel alive, so to speak. This week has all the chances to demonstrate us whether the situation in the world is really unstable or are we just kidding ourselves? Why? Well because EUR/USD is starting the week on a very low note.
Well that is quite the conclusion, Anna, you would say. And I am going to explain my position.
Today – Monday – promises to be a relatively quiet and calm day with no reports and no meeting to look forward to. Only the inertia from last week can support the tensions today. Dollar is more or less growing due to a spiked demand for US Treasury yields. But that is not all she wrote. At-risk assets are also seeing more attention and more demand today. That is the reason for me to think that the situation in the world is not nearly as bad as we think it is. Otherwise, there would be no demand for risks whatsoever.
Of course the demand for risks is not only reflected in EUR/USD. It is also seen across safe-haven-including couples. And believe me, the falls there are not connected with USD growth. But we are just in the beginning of the week. It remains to be seen whether the situation is going to get worse and all of the safe assets are going to recover or not.
The week promises to be very interesting, so use your trading signals for every trade.