US Dollar Weakens as Hope Rises for the Eurozone
US dollar is weakening today as risk appetite makes an appearance. Hope that the European Central Bank is about to do something serious to contain the sovereign debt crisis is boosting other majors against the US dollar today.
For now, the dollar index is lower, dropping as other major currencies gain the upper hand. Most of the losses for the greenback stem from the belief that the ECB will have to do something. Even though the ECB said that rumors about a plan to cap bond rates was misleading, and Germany remains against bond-buying by the ECB, there are still expectations that eurozone leaders will be forced into some sort of action.
There is also some hope as eurozone leaders from France and Germany get ready to meet with Antonis Samaras, the Greek Prime Minister, about extending the terms of the austerity requirements for aid. There are still plenty of hopes that Greece can be saved. Expectations are high, and that is helping the euro for now.
However, things could change quickly. The high expectations that are leading to a lower US dollar today could easily be disappointed, boosting dollar strength later.
At 13:34 GMT the dollar index is down to 81.941 from the open at 82.410. EUR/USD is up to 1.2458 from the open at 1.2346. GBP/USD is up to 1.5768 from the open at 1.5711.
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Earlier News About the US Dollar:
- US Dollar Higher on Expected Volatility, Better Data (2012-08-17)
- Risk Appetite Appears and Sends US Dollar Lower (2012-08-16)
- US Dollar Performance Mixed (2012-08-15)
- US Dollar Pulls Back as Forex Traders Get a Taste for Yield (2012-08-13)
- US Dollar Surges Ahead After Economic Data (2012-08-09)