US dollar index is rising as Forex traders look for a little safety. The news that the European Central Bank balance sheet is soaring, with new bank lending jumping, has many searching for a little stability. And that means that the US dollar has the upper hand against high beta currencies right now.
Euro is losing ground, dropping below the 1.30 mark against the US dollar, as risk aversion returns to the markets. Forex traders are concerned about what’s next in the eurozone drama.
Greenback is mostly weaker today, thanks to a bit of optimism in the markets. Consumer confidence data has provided a degree of optimism for Forex traders, and that means the dollar isn’t needed as a safe haven.
Canadian dollar is higher against the US dollar today as optimism makes an appearance. US markets are showing improvement as consumer confidence gives stocks a boost, and provides hope for a US economic recovery.
Most Western stock markets may be closed today, but Forex trading is happening nonetheless. Trading is relatively thin, though. Right now the euro is gaining against the US dollar on expectations of an economic recovery for the United States, and possibly the world.
The Japanese yen is a little higher today, thanks to the strength of Japanese exports and gains made by the Nikkei today. Stock markets in the United States and many other major cities were closed today for holiday, but the Japanese markets were open, and the gains reflected optimism for the economy.
Swiss franc is lower today in Forex trading, dropping as leaders warn that more job cuts are likely on the way in the country. Swiss companies expect to see weaker sales going forward (an outgrowth of the recently strong franc, which puts Swiss companies at an export disadvantage), and the news means that job cuts are likely on the way.
Euro remains vulnerable in Forex trading, thanks to the still-unresolved eurozone debt crisis. The 17-nation currency is flat right now, slightly lower, ahead of the holiday. Trades are winding down, and the euro is still likely to run into trouble against safe haven currencies like the US dollar and the Japanese yen.
Even with the disappointing GDP data coming out of the United States, there is still plenty that some Forex traders are excited about. The US dollar index is lower as risk appetite makes its appearance, and as the need for safe haven diminishes.
Uncertainty about what’s next for the eurozone is prompting gains for the US dollar today, with the dollar index moving higher, heading for the 80 level. Concerns about the eurozone once again dominate, and the US dollar is moving higher as a result.
