US dollar is struggling today, particularly against the euro, as the US economy is compared with the eurozone economy. Disappointing economic news is weighing on the greenback.
Expectations had been for modest growth in the fourth quarter of 2012. However, when the numbers were reported, US GDP was shown to have declined by 0.1 per cent in the last quarter of 2012. As a result, concerns about the US economy have been renewed.
The US economy is now being compared to the eurozone economy. The latest report on consumer confidence from the European Commission is better than expected, and there is still some excitement over the better than expected German Ifo data reported not too long ago. With all of this better news and optimism in the eurozone, it is little surprise that the US economy is seen as disappointing.
Greenback is down against its European counterparts as a result of the latest comparisons. However, with Japan’s economy in recession and efforts to stimulate the economy likely to result in yen weakness, the dollar is gaining against the yen.
At 17:16 GMT EUR/USD is higher, heading up to 1.3569 from the open at 1.3493. GBP/USD is also gaining, moving up to 1.5787 from the open at 1.5763. USD/JPY is up to 91.0700 from the open at 90.7150.
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