After three days of rallying, the euro is slipping as traders await moves from the ECB to support the 17-nation currency. Last week, Mario Draghi indicated that the ECB is ready to take some of the burden of Italy and Spain, but many are still waiting for something substantial.
US dollar is pulling back today, thanks in large part to the appearance of risk appetite in the financial markets. Risk appetite has been building since the end of last week, and the greenback is lower as Forex traders look for better returns for their money.
UK pound is getting a bit of a boost today, thanks to the latest industrial production data. There was a decline, true, but the decline in production for June was less than expected. The news, along with a bit of risk appetite, is helping the UK pound against low beta currencies like the US dollar and the Japanese yen.
US dollar is looking at gains against high beta majors today, after seeing some weakness earlier. Some of the gains are being pared a little bit, but even with the expectation of good news in the eurozone, there are still doubts, and the US dollar is still being considered a safe haven.
UK pound is lower today, dropping to a one-month low against the euro and pulling back against the US dollar as the latest housing data disappoints. Pound is on the defensive in trading as the housing market in the United Kingdom continues to struggle, and as the economy languishes.
Risk appetite is on the rise today, following good news from the United States. While risk appetite helps the euro in general, the 17-nation currency is also being helped along by optimism about what’s next for the ECB. Many Forex traders just don’t believe that the ECB will let the euro fail.
thanks to the latest payroll data out of the United States. The US dollar is down pretty much across the board as Forex traders show their excitement over better than expected jobs data.
Japanese officials are fretting about the strength of the Japanese yen again. Recent risk aversion is sending the yen higher against other majors today. Concerns about the eurozone are on the rise yet against, and the yen is being used as a safe haven.
Euro is fairly steady today, as the world waits for central bank decisions. While euro has slipped a little against the US dollar, it is still holding its own. Euro is higher against the pound and the yen.
Central bank decisions are on the way this week, but that isn’t helping the UK pound much. Indeed, another dismal manufacturing report is dragging on the pound today. The UK recession seems to be deepening, and there is no way that the Olympics are going to be able turn things around.
