Renewed “Fiscal Cliff” Fears Lead to Risk Aversion

http://newsdoors.blogspot.com/2012/12/renewed-fiscal-cliff-fears-lead-to-risk.html

Renewed “Fiscal Cliff” Fears Lead to Risk Aversion

A setback in budget negotiations late last week generated fears that the US was closer to going over the “fiscal cliff” of automatic tax increases and spending cuts, which led to significant risk aversion before markets closed for the weekend. As a result, safe-haven currencies, like the USD and JPY, turned bullish. This week, low volatility in the marketplace is expected due to the Christmas holiday. Still, traders will want to pay attention to any developments in the US budget talks, as well as several pieces of significant US news. Thursday’s CB Consumer Confidence and New Home Sales, followed by Friday’s Pending Home Sales figures, all have the potential to create market volatility.

http://newsdoors.blogspot.com/2012/12/renewed-fiscal-cliff-fears-lead-to-risk.html