US dollar is lower today as risk appetite makes an appearance. The euro has moved back up to the 1.30 level, and the greenback is down against other currencies as well. The three-month London Interbank Offered Rate (Libor) for the US dollar fell as well.
US dollar has been pulling back, heading lower as hopes for a Greek solution once again rise. Risk appetite is making an appearance as European stocks head higher, and as Asian stocks — especially in China — make a reasonably strong showing. The result of this news, as well as recent earnings reports and improving US economic data, is that Forex traders are in the mood for something high yielding, and the US dollar just isn’t cutting it. The US dollar index is lower as a result.
However, the risk appetite may not remain for too long. Concerns that Greek talks are stalling are starting to worry traders and investors alike. Additionally, there are concerns about what happens with the European Union embargo of Iranian oil exports. There are plenty of other events unfolding that could turn the current climate of risk appetite to risk aversions without too much trouble, turning things around for the US dollar.
At 14:13 GMT EUR/USD is up to 1.3026 from the open at 1.2876. GBP/USD is the same at 1.5558. USD/JPY is lower at 76.9220, down from the open at 76.9590.
If you have any questions, comments or opinions regarding the US Dollar,
feel free to post them using the commentary form below.