US dollar is lower as markets take a breather, showing signs of optimism after a tense couple of days. Stocks in Europe are still struggling, but US stock futures are in the black, hopeful on positive US economic data.
Jobless claims data is reasonably positive, with new claims down to 388,000, and housing market data is better than many expected as home inventories begin to drop. As a result, a little bit of risk appetite is showing in the Forex market.
High beta currencies are gaining against the US dollar — and the Japanese yen is higher against the US dollar as well. Euro is doing its best to reach its session high, and the pound is very close to regaining the high point it reached earlier today. Canadian dollar is gaining ground against the US dollar as well.
Indeed, as US economic news improves, the dollar is less likely to do well in Forex trading. However, things could change if focus once again shifts to the problems in the eurozone. With so much happening in the eurozone, and the problems that continue there, some doubt that the euro will be able to maintain any sort of strength against the US dollar
At 14:11 GMT EUR/USD is higher at 1.3532, up from the open at 1.3463. GBP/USD is higher at 1.5800, up from the open at 1.5730. USD/JPY is lower, down to 76.9360 from the open at 77.0540. USD/CAD is lower at 1.0221, slightly down from the open at 1.0283.
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