US dollar is back on top, thanks to concerns about growth and a lack of good news out of the eurozone. Risk appetite has all but disappeared, and the US dollar is once again the currency of choice.
Right now, many Forex traders and investors are waiting for word from Federal Reserve Chief Ben Bernanke, who is set to testify before Congress on Tuesday and Wednesday. There is speculation that Bernanke’s remarks might hint at more economic troubles ahead. Additionally, more earnings reports are expected. While there have been some pleasant surprises, US earnings have mostly been lackluster.
Meanwhile, in Europe, Spanish citizens are protesting the latest austerity measures. There hasn’t been any reportable progress on the situation in the eurozone, and what’s happening next. As a result, the uncertainty, along with concerns about global economic slowdown, are weighing on high beta currencies. The US dollar is gaining, and the euro is giving up its recent gains, although it is much higher than the earlier session low of 1.2175.
US dollar is falling against the yen today, though, as the yen is considered a safe haven as well. On top of that, the greenback is also struggling against the UK pound.
At 13:29 GMT EUR/USD is down to 1.2236 from the open at 1.2268. GBP/USD is up to 1.5602 from the open at 1.5578. USD/JPY is down to 78.7915 from the open at 79.2660.
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