US dollar performance is mixed today as Forex traders look for direction and mull economic data. Yesterday, July retail sales showed a bigger improvement than expected, but the latest retail-level inflation data shows flatness. As a result, QE3 may not be an immediate occurrence. The US dollar is higher against some major currencies, like the euro, and down against the pound and the yen.
It looks to be a somewhat interesting day today in the markets. US dollar is still gaining against the euro by virtue of the fact that the economic situation in the United States looks so much better than the economic situation in the eurozone. However, dollar is down against the Japanese yen and the UK pound. Sterling is eking out gains, thanks to the latest improvement in jobs data, as well as the release of the Bank of England minutes.
Yen is gaining against the US dollar as a bit of risk aversion enters the market and the yen is sought as a safe haven amidst falling global equity markets.
For now, the US dollar is likely to remain mixed. It’s more about fundamentals in individual economies right now than overall trends toward risk appetite or risk aversion.
At 13:20 GMT EUR/USD is down to 1.2278 from the open at 1.2321. GBP/USD is up to 1.5684 from the open at 1.5677. USD/JPY is down to 78.7215 from the open at 78.7385.
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