US Dollar Loses Some Ground to Euro as Bundestag Decision is Released

US dollar was higher against the euro earlier, thanks in large part to concerns over Spanish debt. However, some of those fears have been allayed with the latest news out of Germany. Against other currencies, US dollar is a bit lower thanks to the risk appetite that is boosting equities around the world.

Greenback has lost its advantage against the euro, thanks to the Bundestag vote to back the Spanish bailout. Germany’s lower house approved its part of the Spanish bank bailout, heeding calls from German president Wolfgang Schäuble to help prop up the failing banks to avoid the problem debt from turning into sovereign debt. Eurozone still has a long way to go, though, and there are still worries related to Spain’s ability to sustain its debt levels.

US dollar is also down against other high beta currencies today. Risk appetite has returned to the markets, with stocks higher around the world. As Forex traders seek riskier assets, the US dollar is being set aside. Higher commodity prices, like gold and oil, are also weighing on the US dollar.

At 17:51 GMT EUR/USD is up to 1.2287 from the open at 1.2283. GBP/USD is up to 1.5723 from the open at 1.5654. USD/JPY is down to 78.6065 from the open at 78.8500.

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