US dollar is losing ground today as risk appetite returns to the market. Greenback is higher against the yen, but down against high beta currencies, particularly the euro.
Greenback is losing ground today as risk appetite returns to the Forex market, and as gold prices begin a recovery move. US economic data has improved, and that is overcoming some of the disappointing information out of the eurozone, to help the 17-nation currency, and other high beta currencies, gain against the US dollar.
CPI data in the United States was a little disappointing, with consumer price dropping by 0.2 per cent last month. However, industrial production and housing starts both picked up, so that provided some solid hope that the US economy is on the path to recovery.
In the eurozone, Forex traders focused on the good news out of the United States, and rising gold prices, rather than the disappointing ZEW data out of Germany. With the focus on the possibility of a recovering US economy, and recovering gold prices, high beta currencies are in demand, and that is leading the US dollar down today.
At 16:28 GMT EUR/USD is up to 1.3180 from the open at 1.3035. GBP/USD is up to 1.5340 from the open at 1.5285. USD/JPY is up to 97.7700 from the open at 96.7550.
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