US dollar is gaining ground as risk aversion makes an appearance. Earlier, it appeared that risk appetite was the order of the day, but things have since turned around, and the greenback is gaining ground as Forex traders seek safe haven.
Earlier, the euro surged above 1.3400 against the US dollar, representing a high not seen for quite some time. However, since that time, the US dollar has taken the upper hand, heading higher as risk aversion returns to the Forex market. The US dollar index is moving higher, and other major currencies are losing ground to the greenback, with the exception of the Japanese yen.
Risk assets are quickly falling out of favor today, thanks in large part to the fact that American Express was downgraded by Goldman Sachs from “buy” to “neutral”, and that is prompting some concern amongst financial stocks. Financials are struggling, and equities are struggling along with the sector. And other risk assets — including European currencies — are falling as well.
At 15:37 GMT the US dollar index is up to 79.595 from the open at 79.533. EUR/USD is down to 1.3355 from the open at 1.3361. GBP/USD is down to 1.6057 from the open at 1.6133. USD/JPY is down to 89.1650 from the open at 89.2970. USD/CAD is up to 0.9861 from the open at 0.9843.
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