US dollar is pulling back today, thanks in large part to the appearance of risk appetite in the financial markets. Risk appetite has been building since the end of last week, and the greenback is lower as Forex traders look for better returns for their money.
Toward the end of last week, the situation improved for global markets. US payroll data showed that the economy added more jobs than expected in July, and the ECB announced that it would support the bond markets. These items are combining to provide a little optimism for the future, and boost risk appetite a bit.
Safe havens are not in demand, and that means that US dollar is a little bit lower against other majors. Commodities are seeing some improvement as well, and that is weighing on the greenback also. Against the euro and the pound, US dollar is pulling back as Forex traders hope for progress in Europe. Better than expected economic data in the United Kingdom is helping the pound, and possible ECB actions are supporting the euro.
Gains by high beta currencies are relatively small, though, and the situation could quickly reverse on bad news.
At 13:58 GMT EUR/USD is higher, up to 1.2431 from the open at 1.2401. GBP/USD is up to 1.5655 from the open at 1.5603. USD/JPY is up to 78.5400 from the open at 78.2465.
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