Data Helps High Beta Currencies; US Dollar Index Drops

Even with the disappointing GDP data coming out of the United States, there is still plenty that some Forex traders are excited about. The US dollar index is lower as risk appetite makes its appearance, and as the need for safe haven diminishes.

Jobless claims in the United States dropped to 364,000, instead of rising as expected. The news is providing hope that the US economy might be ready to begin recovering in earnest. Not only that, but consumer sentiment in the United States rose to 69.9 on the index that measures that indicator.
Hopes are that US consumers will start spending again, and raise the economy out of its doldrums. The news prompted modestly higher stocks, and a modest demand for high beta currencies. Some Forex traders are looking for higher yields, and finding them in riskier currencies.
However, many of the gains are muted ahead of the Christmas holiday. Additionally, there are still valid concerns about the eurozone. The European debt crisis has yet to be resolved, and there are still questions about what will happen next. As a result, things could change quite quickly, with the US dollar suddenly gaining if Forex traders decide the situation calls for safe haven.
At 16:22 GMT EUR/USD is higher at 1.3048, up slightly from the open at 1.2046. USD/GBP is actually slipping a bit to 1.5675, down from 1.5677.

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