Risk aversion is back in the markets, and the US dollar is gaining ground as a result. The greenback is still considered one of the safest bets in the world, and with uncertainty all around, and choppy stock performances, it is no surprise that the greenback is preferred right now.
There is a lot of uncertainty going around right now, and concerns about major economies. The news out of the eurozone and the United Kingdom continues to disappoint. Additionally, China’s growth is slowing. The United States seems to be seeing an improving outlook, and that is giving it an edge, even though the Federal Reserve may not act as soon as some would like it to.
The news that Russia is moving away from the dollar isn’t having much of an impact today. Vladimir Putin has long been an outspoken critic of the fact that the dollar is the world’s de facto currency, and with a recent agreement with China, and with the insistence that Russian oil be sold in roubles rather than dollars, Russia is making a bid to replace the greenback.
At 10:29 GMT EUR/USD is down to 1.2693 from the open at 1.2716. GBP/USD is down to 1.6046 from the open at 1.6113. USD/JPY is down to 106.9790 from the open at 106.9980.
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