Greenback is heading lower today, dropping as economic news softens and results in speculation that the Fed’s taper won’t move forward at a rapid rate.
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There has been some good news out of the eurozone, with Ireland and Spain exiting their bailouts, but there are still plenty of troubles and the European economic recovery may be far from certain.
Is the US dollar getting ready for a revival? With a recovering economy, the United States looks poised to surge ahead of other economies, and the greenback is reclaiming its strength as a premier world currency.
Over the past few years, a number of currencies have done what they can to weaken a bit in order to stimulate economies and gain an edge in global trading. Now it appears that Canada is ready to play that game, and the loonie is lower as a result.
US dollar is heading higher today, thanks in large part to the fact that risk aversion is setting in. Stock markets around the world are falling, and there are global economic concerns with the latest news out of China.
The Canadian dollar continues to weaken in Forex trading, but not everyone is upset about that. There are some who think that the weaker loonie could be a help to the Canadian economy.
Even though eurozone home prices were higher, the ZEW’s disappointment is overcoming some of the good news and sending the 18-nation currency lower against some of its major counterparts.
UK home prices declined in December, once again calling into question the situation surrounding the economic recovery. Pound is lower today as a result of this disappointing news.