Global uncertainty is playing its part in gains for the US dollar index today. Safe haven demand is strong for the greenback, and the currency is gaining ground against some of its major counterparts.
The US dollar recovered from a two-month against the Japanese yen earlier in trading, and is now gaining ground. Additionally, the greenback is higher against the euro, after dropping earlier. Right now, the US dollar is a bit vulnerable, but at the same time there is a great deal of safe haven demand. It’s an interesting situation, and one that should provide opportunities for those looking in the right places.
There continues to be a move away from emerging market currencies today, extending last week’s risk aversion. Additionally, there are still worries about China. The prospect that the Chinese economy could slow down is weighing, since China is a major driver of the global economy. On top of that, there is speculation about what could happen if the Federal Reserve decides not to continue with tapering.
At 15:28 GMT the US dollar index is up to 80.4890 from the open at 80.4230. EUR/USD is down to 1.3665 from the open at 1.3678. GBP/USD is up to 1.6574 from the open at 1.6494. USD/JPY is up to 102.4220 from the open at 102.3650.
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