Investors and Forex traders are feeling a little more upbeat today than they have felt in a long time, and it shows. The US dollar is turning lower against its major counterparts, particularly against the euro. The 17-nation currency has bounced off lows not seen for two years, and is seeing better performance.
Optimism has returned (at least for now), and that has Forex traders looking to riskier assets in the hopes of making a litte extra money. There has been some profit taking as well, since the euro has performed so poorly against the US dollar in recent days.
Greenback is moving inversely to stocks, which got a boost today on some good earnings news out of the financial sector (not from JP Morgan, though). Additionally, the June wholesale prices data is out, and it appears that prices rose 0.1%. Without food and energy, wholesale prices rose 0.2%. Apparently, the drop in energy prices is helping bring a little balance back to some of the price levels.
For now, it appears that the global economy might hold its own, and that has some breathing a little easier — and the US dollar heading a little lower.
At 13:53 GMT EUR/USD is up to 1.2231 from the open at 1.2203. GBP/USD is up to 1.5523 from the open at 1.5428. USD/JPY is down to 79.1295 from the open at 79.3450.
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