Earlier, the US dollar experienced a correction lower. Now, though, the greenback is finding support, and heading higher against its major counterparts. The gains aren’t huge, but they are there.
There’s a lot of speculation going on right now. Forex traders are waiting for policy announcements from the European Central Bank and the Bank of England this week. Additionally, there is a lot of interest in economic stats from the end of the 2012. And, of course, even though further fiscal cliff negotiations have been put off until February, there is a great deal of speculation surrounding what will happen next. And we can’t forget the debt ceiling.
With all of this speculation and uncertainty, it’s not really much of a surprise that a low beta currency like the US dollar is finding support. The greenback is still considered one of the safest currencies, backed by the most stable taxpayer base in the world. As a result, the US dollar seems ideal during times of turmoil.
At 15:14 GMT the US dollar index is higher at 80.606, up from the open at 80.376. EUR/USD is down to 1.3051 from the open at 1.3082. GBP/USD is also lower, down to 1.6011 from the open at 1.6056. USD/JPY is a little higher at 87.8425, up from the open at 87.0525.
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