US Dollar Firmer Against Majors

US dollar is firmer against majors, heading a little bit higher as many Forex traders take a defensive position today. The situation, though, is one of those rare times when the US dollar and US stocks aren’t moving in opposite directions.

Right now, US stocks are heading higher, gaining as investors hope that housing data will show improvement this week. The US dollar is higher as Forex traders consider the situation in Europe, and what might be next.
Once again, Europe is dominating the currency market. European leaders are meeting today to figure out how much each EU country will contribute to the IMF in an attempt to provide the Fund with the ability to help bailout eurozone countries struggling with debt crises.
Additionally, the uncertainty regarding what’s next for North Korea and Asia with Kim Jong Il out of the picture is providing some support for the US dollar right now. US dollar looks like a safe bet right now, and many Forex traders, in what is expected to be a relatively low-volume week ahead of Christmas, are simply looking for a safe haven.
At 15:17 GMT, EUR/USD is dropping to 1.3019, from the open at 1.3043. GBP/USD is lower at 1.5519, down from the open at 1.5545. USD/JPY is higher at 77.8525, up from the open at 77.7900.

If you have any questions, comments or opinions regarding the US Dollar,
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