US dollar is heading higher today, gaining ground as uncertainty about what’s next for the global economy weighs on risk and high beta currencies.
There is a lot of uncertainty out there right now. Risk aversion is high as concerns about the eurozone continue to provide a reason for worry. The situation in Greece still isn’t resolved to everyone’s satisfaction, and Spain continues to put off what many think is the inevitable. The question of when Spain will ask for aid continues to worry Forex traders — and almost everyone else.
Additionally, there is a lot of uncertainty over the Presidential Election in the United States. The polls have President Barack Obama, and his challenger, Governor Mitt Romney, neck and neck. No one knows how that is going to turn out, and there is still a little more than a week left in the campaign.
With all the uncertainty, it is little surprise that there is concern about what’s coming. The US dollar is being sought as a safe haven right now, and heading higher.
At 12:56 GMT EUR/USD is down to 1.2897 from the open at 1.2943. GBP/USD is also lower, down to 1.6036 from the open at 1.6098. USD/JPY is down to 79.5850 from the open at 79.6365.
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