Risk Aversion Sets in on Debt Ceiling Worries

Risk aversion is the name of the game today in forex trading. Forex traders are looking for ways to find safe haven, and that means that the U.S. dollar is inching higher — in spite of worries surrounding the debt ceiling debate.

There still appears to be no compromise in sight as rivals in the U.S. Congress present their own plans. With the House and the Senate controlled by different political parties, a debt ceiling agreement seems far off, and the deadline is fast approaching.

For now, that means that forex traders will look for safe haven in currency trading. However, things could change quickly if the U.S. begins defaulting and the credit rating is downgraded. The greenback may no longer be a safe haven when this weekend is over. 

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