US dollar is seeing a boost today, practically across the board, on the Forex market. Most of the dollar’s strength is coming from uncertainty surrounding the upcoming fight over the debt ceiling.
Once again, focus is on US politicians and what they will decide to do next. There is still a fiscal cliff spending fight coming up, but a pressing concern for many is the debt ceiling. Once again, the debt ceiling will need to be raised, or the United States could start defaulting on its debt. The uncertainty surrounding that fight is already weighing on risk assets, and helping the US dollar.
Greenback is only down against the Japanese yen of the major currencies. Yen is also sought as a safe haven, and is gaining against the dollar, even as the greenback gains against other comers. With uncertainty over what’s next, paired with lackluster economic data being released, it is little surprise that risk aversion is the order of the day. As long as there are these worries, the greenback will have some strength.
At 16:05 GMT, the US dollar index is higher, rising to 79.574 from the open at 79.512. EUR/USD is lower, dropping to 1.3348 from the open at 1.3382. GBP/USD is also down, dropping to 1.6094 from the open at 1.6078. USD/JPY is down to 88.7300 from the open at 89.4755.
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