Wednesday, 28 Apr 2010

Safe-Havens on the Rise as Stocks Turn Bearish

The US Dollar (USD) and Japanese Yen (JPY) both appear to be continuing their gains from this morning. A recent wave of risk aversion has entered the market as investors become further skeptical over the Greek debt crisis and bailout. Statements about the possible need to expand the bailout to wider swaths of Europe do not bode well for market sentiment, or the European regional currencies.

As a result, we see stocks continuing to fall amid uncertainty. Safe-haven investments, such as the Dollar and Yen, appear to be on the rise, and could remain so until this crisis is dealt with. We also see commodity prices in decline as a strengthening USD applies pressure on the commodities market.

For the time being, short positions on major CFD indices appears to be a solid move which many investors have taken advantage of, helping to lower prices further. Additionally, it seems a safe bet that safe-haven currencies will continue to rise until the Greek debt crisis is averted.