Dollar Down after European News

The dollar started this Tuesday losing versus European and higher-yielding currencies as positive events in the old continent pushed further up risk aversion in trading markets globally, making the pound and the euro to rank among the best performers versus the greenback today.

The pound managed to gain versus the dollar and traded above $1.50 ending the longest losing streak versus the U.S. currency in more than a year, after consumer confidence rose in the country to the highest level since the global slump affected the U.K. in 2008. The dollar has been losing ground this week versus the euro as concerns regarding the Greek crisis decreased, and today, after the country announced further cuts to tighten its budget gap, the Eurozone currency rose.

Much of the dollar’s advance since last December had been consequences caused by lack of optimism in European markets, but, this week, after interest rate speculations decreased in the U.S. and Europe had a breather on bad news, the market scenario is not so favorable for the greenback anymore.

GBP/USD traded at 1.5051 as of 14:01 GMT from 1.4964. EUR/USD traded at 1.3652 from 1.3571.

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