US dollar is heading lower against its major counterparts today as risk appetite increases. Financial sentiment seems to be increasing around the world, Alcoa earnings are providing a shot in the arm for US stocks, and it appears tightening is off the table for the near term.
Greenback is down today as the latest financial information helps spur a little extra risk appetite. Financial sentiment, even after the Brexit and in light of issues in the eurozone, appears to be improving, helping high beta currencies against the US dollar. Higher stock futures are contributing to the general feeling of risk appetite.
Also weighing on the dollar is the fact that the Federal Reserve might not be ready to engage in tightening anytime soon. There isn’t much call for it right now, and even the most hawkish members of the FOMC have been a little reluctant to press for higher rates in the near future.
At 11:00 GMT the US dollar index is lower, falling to 96.212 from the open at 96.557. EUR/USD is higher, moving up to 1.1095 from the open at 1.1057. GBP/USD is also gaining ground, moving up to 1.3174 from the open at 1.2998. USD/JPY is higher, moving up to 103.32 from the open at 102.79.
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