US dollar is dropping today, heading lower as risk appetite makes an appearance, and as gold rises, putting downward pressure on the greenback. For now, there is optimism, and that is helping currencies like the euro and the Aussie against the US dollar.
The latest news out of China is an unexpected trade surplus. This news has been helping risk appetite today, since the thought is that China will be able to lead the global economic recovery. The trade surplus is pushing equities higher, and boosting risk appetite right now.
Gold prices are also on the rise, thanks in large part to the news out of China. With gold rise dramatically, that is putting pressure on the US dollar, which often moves inversely to gold. Euro is gaining support against the US dollar with the help of higher gold prices and risk appetite. Additionally, Australia’s position as a major trading partner with China stands to benefit from an improved Chinese economy. That is helping the Aussie against the greenback.
At 13:37 GMT the dollar index lower at 79.921, down from the open at 80.622. EUR/USD is up to 1.3204 from the open at 1.3065. GBP/USD is also higher, up to 1.6106 from the open at 1.6022. AUD/USD is up to 1.0571 from the open at 1.0515.
If you have any questions, comments or opinions regarding the US Dollar,
feel free to post them using the commentary form below.
Be First to Comment