US dollar is heading higher today against its major counterparts, gaining ground as economic concerns return to the world stage. For now, greenback is up against high beta currencies as risk aversion makes an appearance.
Broad weakness from other currencies is providing support for the US dollar right now. Concern about the pace of the global economic recovery is once again a driving factor. The poor retail sales report out of Australia seems to be an indicator that all is not right with the world, and there are more concerns about the eurozone as yields rise on sovereign debt.
It’s also not helping that word has been received that company “insiders” are starting to sell some of their stocks. With indications that some think there is something to be worried about, Forex traders are taking the hint — and worrying about something. Risk assets are falling as European markets plunge today, and as US markets prepare for a negative open.
For now, it’s all about the risk aversion, and that is helping the US dollar.
At 14:29 GMT the US dollar index is up to 79.745 from the open at 79.515. EUR/USD is down to 1.3512 from the open at 1.3583. GBP/USD is down to 1.5650 from the open at 1.5659. USD/JPY is down to 93.3800 from the open at 93.6395.
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