US dollar is losing ground as risk appetite takes over. After logging gains earlier, the greenback is pulling back as high beta currencies see demand. US stocks have sky rocketed higher, and sentiment is improving, thanks to improve hopes for a budget deal and a debt ceiling deal in the United States.
It looks as though Congressional leaders are ready to move forward with a deal to raise the debt ceiling and possibly put an end to the current budget impasse. The news is providing a great deal of enthusiasm in the markets, prompting a surge in risk appetite, and sending the US dollar lower against its high beta counterparts.
Earlier, the greenback was higher as uncertainty prevailed, and as rumors of a possible deal circulated. Now that things seem more definite, the greenback is falling back. It no longer has the upper hand against the European currencies, and the Canadian dollar has re-asserted itself against the greenback as well.
US stocks are surging on the news, and general optimism and risk appetite have returned to the markets.
At 15:26 GMT EUR/USD is up to 1.3542 from the open at 1.3525. GBP/USD is up to 1.5967 from the open at 1.5956. USD/CAD has slipped to 1.0374 from the open at 1.0395. USD/JPY is up to 98.0300 from the open at 97.3600.
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