US Dollar Eases on Optimism and Increased Risk Appetite
The US dollar is easing today, losing a little ground as optimism about the eurozone returens to the currency market. Risk appetite is on the rise again, and high beta currencies are getting a bit of a boost as the US dollar loses ground.
A lot of the optimism is coming in the form of reduced concerns about the eurozone. Once again, there are expectations for a Spanish bailout. Regional elections in Spain have many thinking that the political climate in the embattled country might shift enough that Prime Minister Mariano Rajoy will ask for bailout help soon.
The concerns from Friday’s stock market drops are fading away right now as US stock futures point to a higher open, even after some lackluster earnings reports. Commodities are also edging higher, with gold and oil in the black today. With these changes, the greenback is not needed as a safe haven; instead, Forex traders are looking to other currencies.
At 13:08 GMT EUR/USD is up to 1.3056 from the open at 1.3021. GBP/USD is up to 1.6033 from the open at 1.6012. USD/JPY is up to 79.8450 from the open at 79.2830.
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Earlier News About the US Dollar:
- US Dollar Edges Higher Against Most Majors (2012-10-19)
- US Dollar Gains as Earlier Risk Appetite Fades (2012-10-18)
- US Dollar Pulls Back as Risk Appetite Returns to the Forex Market (2012-10-16)
- Mixed Week for Dollar Starts with Fear, Ends with Hope (2012-10-13)
- Is the US Dollar Winning the Race to the Bottom? (2012-10-11)