US Dollar Pulls Back in Forex Trading
US dollar is pulling back in Forex trading, heading lower after a few days of strength. Risk appetite is rising, and the greenback is losing steam as Forex traders look for higher yields. The US dollar index is falling, and is down to 80.27. Right now, focus is on better economic news, and risk appetite.
Earlier, the news that the Federal Reserve doesn’t plan to do any more quantitative easing helped spur the US dollar on the assumption that the greenback wouldn’t be devalued further. Additionally, the good economic news helped contrast the situation in the improving situation in the United States with the struggles in the eurozone.
Now, though, the US dollar appears to be taking a breather. Greenback has pulled back from its run-up, and is now a little lower against the other majors. With recent jobless claims down to 351,000 — better than expected — and an improvement in the New York factory index, it is little surprise that risk appetite is on the rise.
However, there are some that think that this is only a small change, and that it will be fleeting. After all, there are still problems in the eurozone, and worries about whether or not the sovereign debt contagiou will spread.
At 15:03 GMT EUR/USD is up to 1.3072 from the open at 1.3030. GBP/USD is higher at 1.5668, up from the open at 1.5667. USD/JPY is down to 83.3315 from the open at 83.6885.
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Earlier News About the US Dollar:
- Dollar Jumps as Fed Refrains from QE (2012-03-14)
- US Dollar Mixed, But Mostly Higher (2012-03-12)
- US Dollar Rises as Quantitative Easing Becomes Less Likely (2012-03-09)
- US Dollar Index Gains on European Concerns (2012-03-07)
- Uncertainty Sends US Dollar Higher as Risk Haven (2012-03-06)