US Dollar Gains Against Euro, Falls Against Pound

  February 16th, 2012 at 15:47, Miranda Marquit

Packs of US 100-dollar billsUS dollar is mixed against major European currencies today as good news out of the United States contrasts with continued uncertainty out of the eurozone. Concerns about what’s next for Europe are weighing on the euro, while a general feeling of risk appetite is helping the pound.

Good economic data out of the United States is helping risk appetite right now. Jobless claims have fallen to four-year lows, with first-time claims dropping to 348,000 last week. Even the four-week average is down to 365,250. The news is providing hopes for the US economic recovery. Also helping is the news that wholesale prices climbed in January, and housing starts were up in January.

This good news is prompting risk appetite. European markets are paring earlier losses, and the US stock market is heading higher. This is supporting the pound against the US dollar. The euro, though, is struggling to take advantage of the increased risk appetite. With so much uncertainty surrounding a Greek debt deal, and the possibility that more than 100 European financial institutions could be downgraded by Moody’s, its little surprise that the euro isn’t performing as well as its British counterpart.

At 15:43 GMT EUR/USD is down to 1.3053 from the open at 1.3067. GBP/USD is higher at 1.5758, up from the open at 1.5693. USD/JPY is higher at 78.8400, up from the open at 78.4350.

If you have any questions, comments or opinions regarding the US Dollar, feel free to post them using the commentary form below.

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