US dollar is gaining ground today, moving higher as risk aversion sends high beta currencies lower. Signs of economic weakness are weighing on risk as many traders finally come to the realization that things really aren’t that great.
Concerns about slowing in the pace of the US economic recovery are weighing on other currencies today. Also of concern: The eurozone. Even though the ECB has said in the past — and put into place policies to back up the talk — that it will work to save the euro at all costs, there are concerns that it may not be possible.
With warnings on Italy and France, as well as continued uncertainty about Cyprus, it is little surprise that the US dollar is gaining against the euro.
Also weighing on sentiment today is the fact that China’s economic growth unexpectedly slowed. The news is spooking markets, especially commodities. With China faltering, one of the great drivers of the global economy appears to be succumbing to the same problems afflicting the rest of the world.
At 15:07 GMT the US dollar index is up to 82.28 from the open at 82.13. EUR/USD is down to 1.3082 from the open at 1.3116. GBP/USD is down to 1.5309 from the open at 1.5343. USD/JPY is down to 98.1470 from the open at 98.2135.
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