Risk appetite is making a somewhat cautious appearance on the markets today. Equities in Europe and the United States are mostly higher, and there is optimism regarding the ECB’s inevitable moves to stave up complete collapse in the eurozone. As a result, the US dollar is moving a little lower today.
Greenback is down against the European currencies today as risk-on puts in an appearance. UK pound and euro are both gaining against the US dollar. Hope for the eurozone has arrived in the imminent 30 billion euro bailout for Spain, as well as the expectation that, sometime soon, the ECB will have to get serious about solving the sovereign debt crisis.
In the United Kingdom, excitement over recent data showing better than expected retail sales is helping the cause. The US economic data is slightly disappointing, with a small rise in unemployment claims. This lastest news is creating a bit of confusion about the recovery in the United States, especially in terms of the jobs market. As a result of the indifferent economic news, and a bit of risk appetite, the dollar is heading lower against its high beta counterparts.
At 13:58 GMT EUR/USD is up to 1.2332 from the open at 1.2290. GBP/USD is up to 1.5718 from the open at 1.5684. USD/JPY is also higher at 79.2090, up from the open at 78.9915.
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