Forex News

Live Forex news from all over the world.

    Archives

Data Helps High Beta Currencies; US Dollar Index Drops

December 22, 2011 at 16:24 by Miranda Marquit

A sheet of US 100-dollar bills up to the horizonEven with the disappointing GDP data coming out of the United States, there is still plenty that some Forex traders are excited about. The US dollar index is lower as risk appetite makes its appearance, and as the need for safe haven diminishes.

Jobless claims in the United States dropped to 364,000, instead of rising as expected. The news is providing hope that the US economy might be ready to begin recovering in earnest. Not only that, but consumer sentiment in the United States rose to 69.9 on the index that measures that indicator.

Hopes are that US consumers will start spending again, and raise the economy out of its doldrums. The news prompted modestly higher stocks, and a modest demand for high beta currencies. Some Forex traders are looking for higher yields, and finding them in riskier currencies.

However, many of the gains are muted ahead of the Christmas holiday. Additionally, there are still valid concerns about the eurozone. The European debt crisis has yet to be resolved, and there are still questions about what will happen next. As a result, things could change quite quickly, with the US dollar suddenly gaining if Forex traders decide the situation calls for safe haven.

At 16:22 GMT EUR/USD is higher at 1.3048, up slightly from the open at 1.2046. USD/GBP is actually slipping a bit to 1.5675, down from 1.5677.

If you have any questions, comments, or opinions regarding the US Dollar, feel free to post them using the commentary form below.

2 Responses to “Data Helps High Beta Currencies; US Dollar Index Drops”

  1. Claude Ezagouri

    Why is it that the UDSD has replaced gold as a safe haven?

  2. Andrei Moraru

    Because gold has become a bubble as a hedge against inflation, but the current levels of inflation in US are so low, that it makes little sense to invest into gold.

Leave a Reply

required
required  

Navigation

Menu