US Dollar Drops on Greek Bailout Hopes

US dollar is lower today, dropping as Forex traders look forward to a Greek bailout. The expectation is that eurozone leaders will come up with a way to get Greece the money it needs to avoid a messy default. Equities around the world rallied on the news, and the need for safe haven fell, bringing the US dollar down as well.

US markets are closed today for the Presidents Day holiday, but the Forex market is open. US dollar is trading lower against high beta currencies as risk appetite makes an appearance. Jean-Claude Juncker expressed optimism that a deal would be reached, and reiterated that European leaders want Greece to remain in the eurozone.

The news is creating a feeling of optimism that a deal will get done, and reducing demand for the US dollar. European currencies euro and pound are heading higher against the US dollar, supported by rallying equities in Asia and Europe, and by a general feeling of risk appetite and optimism. The Japanese yen is also lower today on the risk appetite.

At 18:22 GMT EUR/USD is higher at 1.3247, up from the open at 1.3181. Additionally, GBP/USD is up to 1.5849 from the open at 1/5847. USD/JPY is lower at 79.5540, down from the open at 79.6095.

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