The Japanese yen rose today, reversing yesterday’s losses against the euro, as positive mood slowly leaves the Forex market and traders once again seek safety in safe-haven currencies.

The Australian dollar reached the highest level in five months against its US counterpart as fundamental data was positive all around the world, leading to a rally of stocks.

Risk appetite is coming to the Forex market, sending high beta currencies higher. And, normally, this would mean that the US dollar would also be higher against the Japanese yen. Today, though, the yen is higher against the greenback. Weaker than expected US data is sending the dollar lower, and the yen is near three-month highs against the greenback.

US dollar is lower across the board right now, dropping as optimism returns to the market in the form of better economic news. The news is especially encouraging in Europe, where eurozone manufacturing has expanded. Even in the United States, the situation isn’t so bad, with ADP estimating private payrolls up by 170,000.

The euro rose today, erasing its previous losses, after a report showed that eurozone manufacturing improved this month, easing concerns about the negative impact of the European financial crisis on the region’s economy.

The South Korean won fell against the euro today on concerns that problems in Europe crippled economic growth of Asian nations. The currency was also down versus the US dollar, but later rebounded.

The Canadian dollar dropped today versus safer currencies as macroeconomic fundamentals were surprisingly bad both in Canada and in the United States. The currency still managed to outperform the euro after the earlier drop.

The South African rand gained today as optimism for an outcome of Greek debt-swap talks caused a rally of stocks and commodities, while also helping currencies of emerging markets.

Swiss franc is mixed today, higher against the euro, and lower against the US dollar and the Great Britain Pound. Even so, the recent economic forum at Davos has expressed confidence in the Swissie’s cap against the euro, and the ability of the franc to pull back against the 17-nation currency as needed.

Cautious optimism has returned to the markets today, bringing risk appetite and sending the US dollar lower against other major currencies. Corporate earnings are encouraging once again, and most of the European Union countries signed on to a treaty requiring tougher fiscal rules. The result is that many investors and Forex traders are feeling more optimistic about what’s next for the global economy, and that means the US dollar isn’t needed [...]