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Dollar Weak, Attempts to Rebound

November 29, 2012 at 19:14 by Vladimir Vyun

Packs of US 100-dollar billsThe US dollar was weak today amid risk appetite of Forex traders, caused by hopes that the US fiscal cliff can be avoided and Europe will be able to resolve its problems. The currency shows tendency to regain strength as House Speaker John Boehner hurt the market sentiment.

Boehner said that there is “no substantive progress” in the talks about avoiding the fiscal cliff. Previously, the US politicians were saying that some progress was made and an agreement can be reached rather soon. Boehner’s comments damped optimism, but did not destroy it outright.

The positive sentiment was supported by the macroeconomic data from the United States. The US economy grew 2.7 percent in the third quarter of this year, following the 1.3 percent growth in the second quarter. The labor and housing markets also showed signs of improvement.

EUR/USD was at about 1.2971 as of 19:14 GMT today after rising from 1.2951 to 1.3011. GBP/USD advanced from 1.6012 to 1.6037. USD/JPY managed to crawl up to 82.11, following the drop from 82.06 to 81.90.

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

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