More from FXstreet.com

Forex Flash: Key gauges of risk in FX to remain intact – TD Securities

By FXstreet.com,  November 15, 2012, 08:05:00 PM EDT

FXstreet.com (San Francisco) - According to TD Securities, there is speculation growing that "the binary risk on/risk off trading environment is disappearing from FX trading" after the FX market's limited reaction to the 5%-plus slide in stocks since the start of the month.

TD explains: "Our studies do suggest that the USD's positive correlation with volatility and its negative correlation with stock market returns have weakened modestly in the past few months. On average, however, these correlations are still significantly stronger than for most of the post-crisis period still. Risk on/risk off trading remains deeply entrenched in the market from a longer-term perspective."

TD adds: "For the foreseeable future, it seems very likely to us that risk on/risk off will continue to influence FX trading."




The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.


This article appears in: Investing, Forex and Currencies

Referenced Stocks:



Latest News Video

Special Dogs Bringing Comfort to Victims in Moore, Okla.
Special Dogs Bringing Comfort to Vi...
Moore, Okla. PE Teacher Recounts Twister at Highland East
Moore, Okla. PE Teacher Recounts Tw...
Man Tackles Gunman, Saves Sister's Life in Melbourne, Fla.
Man Tackles Gunman, Saves Sister's ...
Police Now Involved in Duck Killing in Ormond Beach, Fla.
Police Now Involved in Duck Killing...


Sign-in
Existing NASDAQ.com member? Log in here.

By signing into to the site using any of the third-party services above, you agree to NASDAQ.com's Terms of Use.

From Our Trusted News Source





Most Active by Volume:

Company Last Sale Change Net / %
BAC $ 13.1672 0.04  0.32%
PG $ 82.28 3.58  4.55%
P $ 19.10 1.94  11.31%
MSFT $ 33.98 0.17  0.50%
FPF $ 25 unch
HPQ $ 24.715 0.15  0.58%
MNKD $ 6.55 0.30  4.38%
MU $ 11.345 0.05  0.40%