US dollar is mixed against major currencies today as markets look for direction after yesterday’s rout of risk assets. Today, there has been some measure of recovery, but there are still enough doubts to help the greenback in some cases.
Against the euro, the US dollar is gaining ground solidly. Even though the Greek parliament accepted austerity measures that allow it to continue receiving help from the European Stability Mechanism, there are still issues in the eurozone. Mario Draghi continues to warn of economic problems, and that is contrasting sharply with the improved data about jobless claims and a narrower trade deficit in the United States.
Greenback isn’t gaining against every currency, though. US dollar is mixed, and is heading lower against the pound, which has gotten a big boost today. The dollar is also lower against the Canadian dollar, a currency that has been inching higher after yesterday’s big disappointment. For the most part, a bit of risk appetite has returned to the markets, and the US dollar isn’t in demand.
There could be challenges to the global economy, as well as the US economy, going forward, though. Congress remains divided, and there are concerns that an agreement that will avoid a fiscal cliff will be hard to come by.
At 14:24 GMT EUR/USD is down to 1.2746 from the open at 1.2771. GBP/USD is up to 1.5993 from the open at 1.5984. USD/CAD is down to 0.9962 from the open at 0.9967.
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