US dollar is lower for now, even though there appears to be a lot of data that is likely to weigh on high beta currencies and turn the situation around. For now, the greenback is down against most of its major counterparts, and risk appetite is still a factor for Forex traders.
Right now, risk appetite is still seen, and high beta currencies are fighting to maintain earlier gains made against the US dollar. However, that may be a difficult feat to accomplish, given the round of data that has been released.
First of all unemployment claims in the United States are surging. Much of the blame is laid at the feet of Hurricane Sandy, and it appears that we are getting an idea of just how much the superstorm is expected to impact the US economy.
Also, the latest figures out of the eurozone show contraction for the economy, and that means that the 17-nation currency region is now officially in a recession. This news is likely to weigh on the euro at some point in the near future, sending it down against the greenback.
At 14:28 GMT EUR/USD is up to 1.2774 from the open at 1.2733. GBP/USD is up to 1.5845 from the open at 1.5841. USD/JPY is up to 81.2780 from the open at 80.2525.
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