US Dollar Drops as Risk Appetite Comes Surging Back
Risk appetite is back in a big way today, thanks to the latest payroll data out of the United States. The US dollar is down pretty much across the board as Forex traders show their excitement over better than expected jobs data.
US dollar is falling against high beta currencies like the euro and the pound, even as it gains against the yen. The good news about July’s payroll data is sending the greenback lower as risk appetite becomes the name of the game today.
The US economy created 163,000 jobs in July, which was much better than the expectation of adding 100,000 jobs. The number is more than double the 80,000 jobs added to the economy in June. The news is supporting riskier assets.
Also adding to the positivity is the speculation that Spain is on the verge of applying for financial aid. The news that Spain might get financial help is boosting the euro, and sending the US dollar lower. With all this good news about the economy and hope for the eurozone, it is little surprise that the greenback is dropping.
At 16:21 GMT the US dollar index is down to 82.319 from the open at 83.315. EUR/USD is up to 1.2389 from the open at 1.2181. GBP/USD is also higher, up to 1.5655 from the open at 1.5515. USD/JPY is up to 78.6100 from the open at 78.2410.
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