A budget vote in Italy has markets waiting for what’s next — and expecting something positive. As a result of this cautious optimism, the US dollar is lower in Forex trading. With support for Italian PM Silvio Berlusconi all but gone (even from allies), it is little surprise that the markets are expecting something reasonably positive.
For now, US dollar is lower, dropping as equities in Europe advance, and as US stock futures point to a higher open. Forex traders are looking for riskier assets and higher yields, and the US dollar just can’t deliver.
Additionally, there is the chance that some are looking at the situation in the US, and wondering if the world’s largest economy is ready for what’s coming. The European debt crisis could affect US banks, and, of course, the economy is sluggish. On top of that, the US could be facing its own debt crisis at some point, with its expanding national debt, and other issues.
For now, though, markets are waiting on Italy, and the US dollar is lower in general against its counterparts. Of course, anything could change, depending on what news comes out today.
At 13:47 GMT EUR/USD is higher at 1.3785, up from the open at 1.3778. GBP/USD is higher at 1.6072, gaining over the open at 1.6056. USD/JPY has moved lower, to 77.9700, down from the open at 78.0465.
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