US Dollar Heads Higher as Uncertainties Abound
US dollar is heading higher today, thanks in large part to uncertainties about what’s next for the global economy. Everything seems to be slowing, and concerns about what’s next for the eurozone are taking center stage again. With all the worries, Forex traders are turning to the US dollar as a safe haven.
Earlier today, the US non-farm payrolls report for June was released. The result was somewhat disappointing. Even though there was a gain of 80,000 jobs in June, the numbers were off the expectations for 100,000 jobs. A lot of the disappointment comes from monthly averages. In Quarter 1, the average monthly job gains were 226,000, while in Quarter 2 that slowed to an average 75,000.
It seems as though the fledgling US economic recovery is slowing already, and that news, combined with concerns about a eurozone recession, and Chinese slowing, is resulting in a risk averse atmosphere. So, even though the economic data is disappointing for the United States, the US dollar is still considered the safe haven of choice. And, when compared with the problems plaguing the eurozone, the US dollar seems like the much better bet.
At 15:05 GMT EUR/USD is down to 1.2275 from the open at 1.2391. GBP/USD is down to 1.5479 from the open at 1.5524. USD/JPY is lower at 79.6360, down from the open at 79.9155.
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Earlier News About the US Dollar:
- US Dollar Gains Amidst Rate Cuts from Central Banks (2012-07-05)
- US Dollar Softens as Factory Orders Rise (2012-07-03)
- US Dollar Rises as Uncertainty Shows Through (2012-07-02)
- US Dollar Pulls Back on Better News Out of Europe (2012-06-29)
- US Dollar Higher as Uncertainty Abounds (2012-06-28)