Yesterday’s enthusiasm has largely disappeared and risk aversion is back in fashion on the Forex market. US dollar is gaining against high beta currencies today as attention turns back to the troubles in Europe.

The US dollar dropped today as expanding manufacturing in the United States and China damped demand for the greenback as a safe haven. The dollar reached the lowest level in more than a month against the yen.

US dollar is almost universally lower today, thanks to a small amount of optimism as the year draws to a close. However, even though the greenback is lower on the day, the currency looks to post an annual gain against the euro.

US dollar index is rising as Forex traders look for a little safety. The news that the European Central Bank balance sheet is soaring, with new bank lending jumping, has many searching for a little stability. And that means that the US dollar has the upper hand against  high beta currencies right now.

Greenback is mostly weaker today, thanks to a bit of optimism in the markets. Consumer confidence data has provided a degree of optimism for Forex traders, and that means the dollar isn’t needed as a safe haven.

The US dollar hasn’t gone very far in any direction, be it to the upside or the downside, in 2011. The currency was falling in the first half of the year on talks about a quantitative easing and hopes for Europe, but reversed its trend in the second half. The greenback has a potential to go either way in 2012 depending of a way the European issues will be resolved and decisions the US policy makers will make.

The US dollar erased its losses against the euro today after a report showed that France’s GDP increased in the last quarter less than was previously estimated. The greenback rose versus the pound, but dropped against the yen.

Even with the disappointing GDP data coming out of the United States, there is still plenty that some Forex traders are excited about. The US dollar index is lower as risk appetite makes its appearance, and as the need for safe haven diminishes.

Uncertainty about what’s next for the eurozone is prompting gains for the US dollar today, with the dollar index moving higher, heading for the 80 level. Concerns about the eurozone once again dominate, and the US dollar is moving higher as a result.

Optimism has returned to the financial markets today, and that has resulted in a lower US dollar on the Forex market. Forex traders are feeling better about the situation around the world and, as a result, are turning to high beta currencies with better yields.