US dollar is gaining today as a number of factors combine to support the greenback. Euro is seeing some profit taking, and the pound is showing weakness. On top of that, there are some indications that risk aversion might be moving back into the picture.
Greenback is heading higher today, gaining ground against most major currencies as the situation changes. Against the euro, the US dollar is seeing some success as profit taking ensues. The euro’s rally last week is prompting some Forex traders to take profits, and that is providing a boost for the US dollar.
Greenback is also deriving strength from pound weakness. Once again, there is the threat of more easing from the Bank of England and that is weighing on the pound. Risk aversion is also making a small appearance right now. Even though there is some optimism, especially with corporate earnings and in terms of the global economy, there are still worries that the upcoming debt ceiling battle could undo a lot of the good done in the United States recently.
At 15:33 GMT the US dollar index is higher, up to 79.862 from the open at 79..774. EUR/USD is down to 1.3450 from the open at 1.3467. GBP/USD is down to 1.5716 from the open at 1.5761. USD/JPY is down to 90.7700 from the open at 91.0500.
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