Japanese yen is gaining against other majors as concerns about global economic growth return to the markets. Worries about what’s next for the world economy have added to risk aversion, weighing on high beta currencies and making currencies like the yen preferred.
Once again, rumors are flying concerning the euro, and what could be done to save it. Mario Draghi wrote an English-language opinion piece published earlier in Die Zeit, a German newspaper. The piece takes a look at the future of the euro, and lays out what Draghi considers “exceptional measures”, as well as calling for a fundamental change in the makeup of the eurozone.
UK pound is moving higher, consolidating after yesterday’s gains. Sterling is heading higher today, in line with market movements. However, the pound isn’t making any big moves, as there are still a lot of questions that need answering, and the UK economic outlook is far from certain.
US dollar is lower pretty much across the board as optimism about the eurozone adds a little risk appetite to the mix. Also not helping the US dollar is the fact that some are wary of what Ben Bernanke will say in Jackson Hole on Friday.
Euro is heading higher today as Forex traders assume that the European Central Bank will act to alleviate some of the issues with the sovereign debt situation. However, gains are likely limited, since no one has details, and possible actions are only rumors.
Canadian dollar is heading a little bit higher today, gaining as concerns about the tropical storm known as Isaac heads for the Gulf of Mexico. Oil prices are seeing a bit of a boost, and that is helping the loonie on the Forex market.
UK pound continues to struggle as concerns about the economy weigh. Today, UK markets are closed for the Summer Bank Holiday, but that the currency market is still open. Sterling is having trouble as expectations for the economy, and the pound, remain somewhat low.
Euro is heading lower, dropping as concerns about what’s next for the eurozone rise. Worries about policy decisions in the eurozone are weighing on the 17-nation currency following a meeting between Greek Prime Minister Antonis Samaras and German Chancellor Angela Merkel.
Japanese yen is back in demand as a safe haven as concerns about what’s happening in Europe weigh on high beta currencies. Once again, equities around the world are dropping as investors worry about what’s next for the eurozone. Yen is in demand as Forex traders look for a safer currency.
US dollar is weakening today as the Federal Reserve stands ready to implement more stimulus if it feels the economic situation warrants it. Even though some of the greenback’s earlier losses have been pared a little bit, euro is still stronger as the prospect of a weakening dollar becomes more realistic.
