US dollar is mostly lower today, especially against high beta currencies. Risk appetite is making an appearance, and Forex traders and others are looking for higher yields. There is some optimism about the US economic recovery, as well as hopes for an improved global economic situation.
In the United States, the latest unemployment claims data has reported that jobless claims dropped by 50,000. The news is welcome to those looking for signs that a sustained economic recovery might be coming in the United States. Additionally, good news out of Europe is helping as well. European debt auctions went better than expected, with Spain selling more bonds than expected, and French borrowing costs dropping.
All of this is prompting some risk in the currency markets. Forex traders are looking for better yields than the US dollar can offer, and considering other currencies. Euro is moving higher, breaking through the 1.29 level. The pound is also higher against the greenback today. Only the Japanese yen, of the majors, is down against the US dollar right now. With risk appetite a part of the picture, there is little need for the safe haven that the yen (and the dollar) represents.
At 19:00 GMT EUR/USD is higher at 1.2938, up from the open at 1.2862. GBP/USD is higher at 1.5471, up from the open at 1.5438. USD/JPY is higher at 77.1915, up from the open at 76.8275.
If you have any questions, comments or opinions regarding the US Dollar,
feel free to post them using the commentary form below.