US Dollar Gains on Demand, ADP Report
US dollar is gaining ground today, heading higher on demand for safer assets. Additionally, the fact that the US economy continues to show progress is helping the greenback against other currencies.
The ADP report in the United States showed that new private sector jobs grew by 162,000 for the month of September. This was better than expected, and indicates that the US economy is making some improvements — even if they are rather small and slow in coming.
However, when contrasted with the Japanese economy, which continues to flounder a bit, and with the eurozone economy, which might have slipped into recession during the third quarter of 2012, the US economy seems to be on the right track. As a result, it is little surprise that the US dollar has the upper hand today.
Concerns about the eurozone represent the biggest factor on the currency market today. Worries about Spain and Greece continue, and that is providing fuel to the US dollar, which is preferred as a safe, stabler currency. For now, the greenback is likely to continue in strength.
At 13:46 GMT EUR/USD is down to 1.2900 from the open at 1.2919. GBP/USD is also lower, heading down to 1.6100 from the open at 1.6133. USD/JPY is up to 78.4600 from the open at 78.1535.
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Earlier News About the US Dollar:
- Bernanke Erodes Dollar's Strength (2012-10-02)
- US Dollar Mixed as Forex Traders Await Direction (2012-10-01)
- US Dollar Pulls Back on Renewed Risk Appetite (2012-09-27)
- US Dollar Gains as Global Economic Fears Return to Focus (2012-09-24)
- US Dollar Stronger on Global Economic Fears (2012-09-20)