US dollar is edging higher against most majors right now, gaining as risk aversion enters the picture. One of the big drivers is the continued uncertainty about Spain and the eurozone. However, the latest US company earnings news isn’t helping matters, either.
Greenback is getting a boost today, thanks in large part to uncertainty over what’s next in the eurozone drama. On the second day of the EU summit, Spanish PM Mariano Rajoy still claims that he hasn’t decided whether or not to ask for a bailout. This uncertainty is weighing on risk appetite, and the US dollar is heading higher as a result.
It’s also not helping risk assets that US stocks are heading lower today, thanks to lackluster earnings. McDonalds (MCD), GE (GE), and Microsoft (MSFT) all reported disappointing third-quarter results. On the tech side, Google (GOOG) has also disappointed. All of this news is adding to the general feeling of risk aversion that is creating demand for the US dollar as a safe haven investment.
Gold prices are lower as well, and that is helping the greenback, which often moves inversely to the precious metal.
At 14:22 GMT EUR/USD is down to 1.3030 from the open at 1.3066. GBP/USD is down to 1.6037 from the open at 1.6043. USD/CAD is up to 0.9912 from the open at 0.9853. USD/JPY is up to 79.3245 from the open at 79.2695.
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