US Dollar Lower as Global Equities Advance

The US dollar remains lower in Forex trading today, heading down as global equities continue gain ground. Instead of focusing on Slovakia’s rejection of the EFSF expansion, traders are focusing on bank recapitalization expectations.

Investors are looking for higher yields, and avoiding safe havens right now. Lower yielding assets are being passed over in favor of higher yields as the tone is relatively optimistic ahead of eurozone announcements and the release of the minutes from the last Federal Reserve meeting.

There are a number of items of interest that could impact markets in the short-term, though. The US Senate has passed a China currency bill, UK unemployment has been released, and everyone is waiting to see what happens next with Slovakia in the eurozone debt crisis containment saga. All of this could have an impact on the markets later, and change the situation.

For now, Forex traders and others are optimistic and in a mood to take on a little more risk. However, if things change, and the global economy looks to sink back into recession, the US dollar could make a comeback.

At 13:24 GMT US dollar is down against most major currencies. EUR/USD is up 1.3759 from the open at 1.3640, GBP/USD is higher at 1.5721, up from 1.5577, USD/CAD is lower, down to 101.60 from 103.02. Only USD/JPY is higher, at 77.28 from 76.65.

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