Risk aversion is helping the US dollar today in Forex trading, providing a boost as concerns about the eurozone once again become prominent in the financial markets. Forex traders are looking for some safety and stability, and they are turning to the greenback to get it
Right now, Forex traders are looking for yields as better economic data takes center stage. Aussie has overcome earlier losses to trade high against most major currencies.
Japanese yen is mostly lower today, thanks in large part to the asset buying program from the Bank of Japan from earlier this month. Stocks have been bolstered by the easing in Japan and Europe, and that has reduced the need for safe haven, sending the yen lower.
Euro is struggling today, especially against the US dollar. The Long-Term Refinancing Operation offered more money than expected, and that has many wondering about the stability of the European banking system.
US dollar is mixed today after encouraging GDP data was released. The latest numbers for the fourth quarter of 2011 indicate that the US economy grew 3%, which is better than the 2.8% pace originally reported.
Canadian dollar is clinging to gains, struggling to retain the upper hand as risk aversion begins to creep into the picture. Loonie is slightly higher against the US dollar, as well as against the UK pound and the euro.
UK pound is higher against the US dollar today, gaining on better retail sales data. The expectation now is that Great Britain will avoid a recession, and that is providing sterling with a little support today.
After ending last week lower, the US dollar is gaining today as risk aversion makes an appearance, thanks to the results of the G-20 meeting over the weekend.
With G-20 delegates asking questions about the way the entire sovereign debt crisis has been handled. With the world’s uncertainty about the eurozone on display, the euro is much lower today against its major counterparts.
US dollar is softer today as general risk appetite eliminates the need for safe haven currencies. Optimism about the future is high, and many forex traders are looking forward to improvements in the global economy.
