Ben Bernanke may be daring investors to buy stocks, but this attempt at encouraging an investment in risk assets doesn’t seem to be working out today. Risk aversion has set in, and the US dollar is higher, and risk assets are lower.
After declining yesterday, the US dollar is back up on top as Forex traders and others ponder what’s next for the global economy. Risk aversion seems to be the theme for today as high beta currencies head lower against the US dollar. Other low beta currencies, like the yen, are also seeing some success today.
Now that the flurry of economic data has slowed down, and Ben Bernanke has given his testimony before Congress, Forex traders and other investors have a chance to process the information. The fact that a long weekend is coming for the United States is also helping matters.
As a result, there is a little bit of pull back from the recent “risk on” environment. Many are looking for safe haven, and that is boosting the US dollar today.
At 13:12 GMT EUR/USD is lower, falling to 1.2928 from the open at 1.2933. GBP/USD is also down, dropping to 1.5091 from the open at 1.5107. USD/JPY is lower, down to 1011.7925 from the open at 102.0100. USD/CAD is higher today, gaining to 1.03441 from the open at 1.0305.
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