Rebound in European Shares Eases Risk Aversion Fears
On Friday (Nov. 7th) the dollar slipped against other major currencies as a rebound in European share prices eased risk aversion fears. Many investors took advantage of Forex opportunities and sold off dollars and the low-yielding yen and bought into riskier currencies, including higher-yielding currencies such as the Euro and the Pound.
Signs Of a Recession
European data released Friday pointed to a prolonged global economic slowdown which will make investors wary of taking risks. German industrial production fell to a 14 year low and figures from the US are expected to show signs of a deepening recession. Investors usually flock to the dollar in times of trouble and these fears are in part responsible for the dollars surprising performance on Forex markets.
