Greenback is getting a boost today, rising as fear drives risk aversion and sends Forex traders looking for safe haven. With concerns about Greece weighing on the euro, and worries about the fiscal cliff weighing on every risk asset out there, it is little surprise that the US dollar is heading higher today.
US dollar is on the rise as Forex traders look for safety and stability amidst the wreck that could be the global economy. One of the concerns out there right now is the fact that, even after an austerity package passed Greek parliament, aid to the country may not be unfrozen. At least, EU officials have said that decision about Greece’s aid won’t be made during a meeting to be held on Monday.
While that is weighing on the euro somewhat, and causing some concern, the much bigger issue is that of the looming US fiscal cliff. In order to resolve the situation, a divided Congress has to compromise and take action. That has not been a hallmark of the current Congress, and the possibility that the United States really could go over a fiscal cliff is worrying Forex traders and other investors.
At 14:10 EUR/USD is down to 1.2699 from the open at 1.2748. GBP/USD is down to 1.5916 from the open at 1.5982. USD/JPY is down to 79.3130 from the open at 79.4725.
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