US Dollar Firms After Mario Draghi’s Speech
US dollar firmed, especially against the euro, following a speech given by European Central Bank President Mario Draghi to the European Parliament. Draghi’s speech once again draws attention to the economic situation in the eurozone, which can be contrasted with the US economy’s recovery.
Even though the US economy is recovering at a rather slow rate, the fact of the matter is that there is some recovery there. The latest unemployment reading showed a drop in the unemployment rate, and it appears that jobs are being added to the economy. The economic recovery, though slow, offers a contrast to a eurozone that seems to be slipping into recession.
As a result, after Draghi’s comments to the European Parliament, the US dollar firmed against the euro in forex trading. A general feeling of risk aversion in the Forex market is also helping the greenback against the UK pound, even as the greenback dropps against the Canadian dollar. The US dollar is losing ground to the Japanese yen, though.
Risk aversion is likely to be a regular fixture for a while, though. The International Monetary Fund has pointed out that risks for global slowdown are quite high.
At 13:08 GMT EUR/USD is down to 1.2932 from the open at 1.2971. GBP/USD is down to 1.6013 from the open at 1.6026. USD/CAD is down to 0.9759 from the open at 0.9769. USD/JPY is down to 78.2785 from the open at 78.3600.
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Earlier News About the US Dollar:
- Nonfarm Payrolls Do Not Harm Dollar to a Great Extent (2012-10-05)
- Dollar Jumps vs. Yen on Employment Data (2012-10-05)
- ECB Eases Tensions, Sends Dollar Lower (2012-10-04)
- US Dollar Gains on Demand, ADP Report (2012-10-03)
- Bernanke Erodes Dollar's Strength (2012-10-02)