US dollar is gaining the upper hand today as uncertainty makes its appearance. At first there was profit taking from yesterday’s gains against the US dollar, but now there is a bit of an edge to the markets as investors and Forex traders await more information.
After a bit of optimism, risk aversion is creeping back, and that is pulling the Canadian dollar down against the US dollar. Stocks are pointing to a lower open today, and European stocks are heading lower. However, the recent losses aren’t all due to risk aversion; there’s been some profit taking as well.
US dollar is weakening today as risk appetite makes an appearance. Hope that the European Central Bank is about to do something serious to contain the sovereign debt crisis is boosting other majors against the US dollar today.
Euro is looking for direction right now, and it seems likely that it will be all about the headlines this week. Confusion about what the ECB is planning to do — and what Germany is on board with — is hindering the euro a bit as Forex traders look for clues about what will happen next.
Aussie is higher today, gaining against the US dollar ahead of tomorrow’s statement from the Reserve Bank of Australia. There is interest in what RBA officials will say, since there are expectations that an interest rate cut could be on the way.
Even though German Chancellor Angela Merkel has implied support for ECB efforts to save the euro, the 17-nation currency continues to struggle today. Euro is heading lower, and there isn’t a lot that can be done about it for now. Really, the major moves are expected next week — after Merkel meets with other eurozone leaders.
US dollar is higher today, gaining on continued concerns about the situation in Europe, as well as better economic data in the United States. Greenback is gaining as speculation about a Greek exit from the eurozone is speculated on, and as the latest consumer sentiment numbers are released.
Risk appetite is making a somewhat cautious appearance on the markets today. Equities in Europe and the United States are mostly higher, and there is optimism regarding the ECB’s inevitable moves to stave up complete collapse in the eurozone. As a result, the US dollar is moving a little lower today.
Japanese yen is lower today, sliding against major currencies as traders express their expectations for monetary easing by the Bank of Japan. Between US Treasury yields and possible BOJ easing, the yen is likely to continue losing ground to other currencies.
Aussie is heading higher today, but its direction is far from certain. Australian dollar has overcome some earlier losses to the US dollar, and it is gaining against European currencies right now.
