US dollar is trading mixed today, and is mostly rangebound, as Forex traders await developments. There is plenty to consider right now, between speculation of an ECB cut and interest in continued earnings reports.
Greenback is higher against the euro today, gaining as speculation that the European Central Bank will be forced to cut rates as economic news out of Germany continues to worsen. US dollar is lower against the UK pound, though.
There is a bit of risk aversion in the currency market, and that is leading to flows toward low beta currencies like the yen. Dollar is down against its Japanese counterpart for this reason, even though at some point the yen is likely to weaken.
Another item of interest is that the Chinese yuan continues its efforts to become a reserve currency. China continues to make bilateral trade agreements, and more central banks are investing in Chinese bonds. China is actively working to expand its financial influence, and there seems to be an effort to replace the dollar as the world’s de facto reserve currency.
At 13:02 EUR/USD is down to 1.2985 from the open at 1.2996. GBP/USD is up to 1.5260 from the open 1.5261 from the open at 1.5241. USD/JPY is lower, dropping to 99.4500 from the open at 99.4830.
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