US dollar is softer today as general risk appetite eliminates the need for safe haven currencies. Optimism about the future is high, and many forex traders are looking forward to improvements in the global economy.
US consumer confidence saw an improvement, showing above minus 40 for the second consecutive time. This latest reading is the fifth improvement in a row, and many are hopeful that this means that consumers are ready to start spending again.
This good news is also supported by Germany’s positive Ifo data. The better than expected business confidence reading is being focused on, instead of disappointing fourth quarter GDP data. Upbeat messages from ECB officials, and expectations of another financing operation, making 470 billion euros available for cheap, are helping the situation in the eurozone, and sending the euro higher as a result.
In the United States, unemployment claims remained steady, and housing showed improvement. All of this optimism is promoting risk appetite, and an interest in high beta currencies. The US dollar is being left behind as a result — except for against the yen. Greenback is above the 80 level against the yen.
At 15:19 GMT EUR/USD is higher at 1.3469, surging up from the open at 1.3373. GBP/USD is also higher, rising to 1.5870 from the open at 1.5745. USD/JPY is gaining at 80.7505, up from the open at 79.9970.
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