US Dollar Drops as Optimism Spurs Risk Appetite
US Dollar is falling back as Forex traders find some optimism in today’s good economic news. Jobless claims have fallen to lows not see for more than three years, and investors and traders alike are excited about the news. Jobless claims fell to 366,000,
Yesterday, it was all about Italian debt costs, and the US dollar was higher. Today, though, the eurozone’s troubles have been pushed to the periphery as Forex traders and other investors allows some optimism to return on the hope that the economic recovery in the United States might pick up some steam.
Because the US dollar is often used as a safe haven currency, due to the stability of the taxpayer base, traders tend to favor the greenback in times of anxiety and uncertainty. Today, though, there is hope, and the US dollar is falling back as riskier currencies, with higher yields, are favored.
There are still troubles in the eurozone to contend with, though, and the US economy has a long way to go before it shows signs of solid growth. However, there appears to be a start, and that is enough for now. US dollar might rally again soon if issues in Europe aren’t resolved.
At 15:52 GMT, EUR/USD is higher at 1.2995, up from the open at 1.2982. GBP/USD is higher at 1.5498, up from the open at 1.5467. USD/JPY is lower at 77.9034, down from the open at 78.0900.
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