Russia’s war in Ukraine is not going to end any time soon

In the world of financial jargon, the two widely used terms “risk” and “risk off” refer to the level of risk that investors are willing to etan during the referenced period. modest.

In general, during periods of “risk”, stock markets will increase, most raw materials – except gold – will also gain in value, because they will benefit from a perspective of positive growth. The currencies of nations which are heavy exporters of basic products are strengthened due to increased demand and cryptocurrencies increase. In a “risk” market, obligations increase – in particular large state obligations – gold shines and forfeited currencies such as the Japanese yen, the Swiss franc and the US dollar in all.

The Australian dollar (AUD), the Canadian dollar (CAD), the New Zealand dollar (NZD) and the FX minor such as the Rouble (Rub) and the South African rand (ZAR), all tend to increase on the “risk” markets. Indeed, the savings of these currencies depend strongly on exports of basic products, and basic products tend to increase the price during risk periods. Indeed, investors provide for greater demand for raw materials in the future due to increased economic activity.

The main currencies that tend to increase during “risk” periods are the US dollar (USD), the Japanese yen (JPY) and the Swiss franc (CHF). The US dollar, because it is global reserve currency, and because in times of crisis, investors buy American public debt, which is considered safe because the greatest economy in the world is unlikely to be lacking. The yen, increased demand for bonds from the Japanese government, because a high proportion is held by national investors who are unlikely to pour them – even in crisis. The Frankish Swiss, because strict Swiss banking laws provide investors with improved capital protection.