Risk appetite is making an appearance today, and that is sending the US dollar a little bit lower today. News out of China is driving some risk appetite, and for now there is more focus on high yielders than there is on what the Federal Reserve is planning.
US dollar is lower against its high beta counterparts today, dropping as risk appetite comes to the markets. China lowered its rates, bring them to the lowest level in two weeks. This move has reduce fears of a credit squeeze in China, and that has many sighing with relief — and ready to take a few risks. Also helping risk appetite is the news that UK industrial production has improved, and that Germany continues to improve, leading the eurozone’s economy.
For now, this good news has more Forex traders focused on the positive things happening, and that is good for risk appetite. Not a lot of emphasis is being placed on the Federal Reserve and the taper. However, that could change a little bit later. Cleveland Fed President Sandra Pianalto is expected to speak a little bit later about certain aspects of the US economy, and that could change the outlook.
At 14:24 GMT EUR/USD is up to 1.3515 from the open at 1.3471. GBP/USD is up to 1.6097 from the open at 1.6044. USD/JPY is up to 98.6295 from the open at 98.5600.
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