US dollar is gaining ground today, heading higher on risk aversion, and gaining strength from the fact that the economic recovery seems to be progressing. Many Forex traders are especially interested in the dollar’s performance against the yen; it looks as though the greenback is ready to test the 100-yen level again.
With equities struggling today, there is a bit of risk aversion, and that is helping the greenback against its high beta counterparts. Also helping the US dollar, though, is the fact that the economic recovery in the United States seems to be progressing.
Better than expected news, particularly on the employment front, is providing some support for the dollar. The US economy is doing well, compared to the economies in the eurozone and in the United Kingdom.
Also today, the US dollar looks ready to test the 100-yen level again. With the Bank of Japan engaged in aggressive easing, and hoping to stimulate the economy that way, there are expectations of further yen weakness. Many Forex tradesr believe it’s only a matter of time before the US dollar hits the 100-yen mark.
At 15:29 GMT EUR/USD is down to 1.3072 from the open at 1.3123. GBP/USD is down to 1.5547 from the open at 1.5555. USD/JPY is up to 99.3025 from the open at 99.1850.
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