US dollar is falling across the board today as some optimism makes an appearance in the markets, and as traders continue to digest the latest statement from the Federal Reserve. The dollar index is down today, and greenback is struggling against its major counterparts.
Greenback is heading lower today, dropping even though news out of the eurozone continues to worsen. S&P just cut Spain’s credit rating, but that hasn’t had a huge impact on the euro yet. Euro is down from the session high, but losses haven’t been too heavy, and the 17-nation currency is still higher than the open against the US dollar.
US dollar is under pressure as a result of the recent policy statement from the Federal Reserve. Ben Bernanke pointed out that the economy is still sluggish, and that further asset purchases might be needed. The prospect of more quantitative easing is dragging on the dollar. Plus, there is some optimism about equities, with earnings continuing to be reasonably good, it is clear that there are some reasons for optimism.
At 12:52 GMT EUR/USD is up to 1.3262, higher than the open at 1.3224. GBP/USD is higher at 1.6247, up from the open at 1.6185. USD/JPY is lower at 80.5270, down from the open at 80.9935.
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