Dollar Weak, Attempts to Rebound
The US dollar was weak today amid risk appetite of Forex traders, caused by hopes that the US fiscal cliff can be avoided and Europe will be able to resolve its problems. The currency shows tendency to regain strength as House Speaker John Boehner hurt the market sentiment.
Boehner said that there is “no substantive progress” in the talks about avoiding the fiscal cliff. Previously, the US politicians were saying that some progress was made and an agreement can be reached rather soon. Boehner’s comments damped optimism, but did not destroy it outright.
The positive sentiment was supported by the macroeconomic data from the United States. The US economy grew 2.7 percent in the third quarter of this year, following the 1.3 percent growth in the second quarter. The labor and housing markets also showed signs of improvement.
EUR/USD was at about 1.2971 as of 19:14 GMT today after rising from 1.2951 to 1.3011. GBP/USD advanced from 1.6012 to 1.6037. USD/JPY managed to crawl up to 82.11, following the drop from 82.06 to 81.90.
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Earlier News About the US Dollar:
- Greenback Gets a Boost on Eurozone Uncertainty (2012-11-27)
- US Dollar Gains Ground as Eurozone Troubles Continue (2012-11-26)
- US Dollar Remains Weak vs. Yen, Attempts to Gain vs. Euro (2012-11-23)
- Dollar Weak on Positive US Fundamentals & Hopes for Greece (2012-11-22)
- US Dollar Drops on Return of Risk Appetite (2012-11-19)