US dollar is heading lower today as risk aversion fades and Forex traders look for higher yields instead of safe haven. Concerns about the situation around the global have eased a bit on the rumors that an agreement on Greece is about to be reached, and that compromise is likely in the US fiscal cliff drama.
European Union officials think that a funding agreement on Greece can be reached in the next couple of days, even with the IMF dragging its feet about how it should be accomplished. This is sending the US dollar lower as the euro rises.
Also weighing on the US dollar is optimism about what’s next in the saga surrounding the fiscal cliff. Faced with a possible budget crisis in the United States, it looks like opposing parties in US Congress are getting ready to compromise and work together. The resulting optimism is sending the US dollar lower as risk appetite returns and Forex traders move away from safe havens.
The lower greenback is also supporting gold prices right now, and gold — along with other commodities — is gaining.
At 15:13 GMT EUR/USD is up to 1.2781 from the open at 1.2749. GBP/USD is up to 1.5895 from the open at 1.5887. USD/JPY is down to 81.2445 from the open at 81.8350.
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