The US dollar is easing today, losing a little ground as optimism about the eurozone returens to the currency market. Risk appetite is on the rise again, and high beta currencies are getting a bit of a boost as the US dollar loses ground.
A lot of the optimism is coming in the form of reduced concerns about the eurozone. Once again, there are expectations for a Spanish bailout. Regional elections in Spain have many thinking that the political climate in the embattled country might shift enough that Prime Minister Mariano Rajoy will ask for bailout help soon.
The concerns from Friday’s stock market drops are fading away right now as US stock futures point to a higher open, even after some lackluster earnings reports. Commodities are also edging higher, with gold and oil in the black today. With these changes, the greenback is not needed as a safe haven; instead, Forex traders are looking to other currencies.
As long as there is hope that the euro will be support (the latest protestation of complete support recently came from ECB policymaker Joerg Asmussen), the US dollar is likely to see losses.
At 13:08 GMT EUR/USD is up to 1.3056 from the open at 1.3021. GBP/USD is up to 1.6033 from the open at 1.6012. USD/JPY is up to 79.8450 from the open at 79.2830.
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