US dollar is seeing some strength today, gaining as risk aversion makes an appearance. Concerns about the eurozone, as well as speculation about what Ben Bernanke will say about the economy when he testifies before Congress today, has many forex traders and investors a little nervous.
As a result, the US dollar index is stronger as forex traders seek some safe haven. The much stronger dollar is also weighing on Comex gold, and oil prices are lower as well. Interestingly, the euro isn’t one of the currencies falling against the US dollar. Even with the troubles in the eurozone and Greece on the edge of default, the euro is higher against the US dollar. However, the UK pound, Japanese yen and Canadian dollar are all lower in comparison with the greenback.
For the most part, forex traders are likely to make relatively small moves until after Ben Bernanke’s remarks to the US Congress. What he says about the economy, possible stimulus measures, and the markets is likely to make a big impact.
At 14:52 GMT, the US dollar is mostly higher, with GBP down to 1.5408 from the open at 1.5432. USD/JPY is up to 76.73 from 76.62, and USD/CAD has risen to 1.0611 from 1.0546. AUD/USD has dropped from 0.9528 to 0.9414. The main exception is that the euro is higher, with EUR/USD up to 1.3270 from the open at 1.3176.
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