A little bit of risk appetite is creeping back into the picture, and the US dollar is losing a little ground as a result. Greenback is headed a bit lower today, dropping as good news in the United States prompts Forex traders to go looking for yields.
The latest news out of the United States as Cisco reporting an upside earnings surprise, and that is helping the entire situation. On top of that Federal Reserve Vice Chair Janet Yellen proposed that the Fed link its zero rate policy to a goal that include inflation and employment. The news is causing some excitement, since it indicates that the Fed’s “lower for longer” outlook may slowly be changing.
As a result of these surprises, high beta currencies are getting a small boost. It’s important to remember that it is a small boost, however. Concerns about the fiscal situation in the United States, as well as worries about what might next in the eurozone continue to dominate markets.
At 14:28 GMT the US dollar index is down to 81.046 from the open at 81.075. EUR/USD has moved a little bit higher to 1.2746 from the open at 1.2704. GBP/USD has been vacillating between small gains and small losses this session, but is currently a bit lower at 1.5867, down from the open at 1.5872. USD/CAD is down to 1.0012 from the open at 1.0021.
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