US dollar is rising as Greece once again takes center stage in the world markets. Greenback is gaining as concerns about what’s next for Greece — and the eurozone — weighs on risk currencies, especially the euro.
For now, Forex traders are looking for safe haven. With worries about Greece as European leaders meet in Brussels, there are worries that an agreement about what to do about Greece will be long in coming. In the meantime there are other concerns cropping up to make a safe haven currency like the US dollar desirable.
In Beijing, questions about China’s government debt have been raised. Premier Wen Jiabao says that China has the situation under control, but there are still concerns about the situation. After all, many have expected that China will be the pre-eminent economic force going forward. If China is hampered by sovereign debt, though, it could mean difficulties for the global economy.
United States economic data shows that personal income increased in December 2011, and that spending fell slightly. This could be an indication that consumers are remaining in savings mode, unsure about the economy and unwilling to spend a great deal. This could hamper US economic recovery efforts, although it is unlikely to sink the US dollar.
At 14:15 GMT EUR/USD is lower at 1.3089, down from the open at 1.3226. GBP/USD is down to 1.5563 from the open at 1.5735.
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