US Dollar Drops as Optimism Returns to Markets

US dollar is lower across the board right now, dropping as optimism returns to the market in the form of better economic news. The news is especially encouraging in Europe, where eurozone manufacturing has expanded. Even in the United States, the situation isn’t so bad, with ADP estimating private payrolls up by 170,000.

All of the good news in other countries means that investors and Forex traders alike are ready for riskier assets and higher yields. As a result, the US dollar is not being sought as a safe haven investment. Indeed, the US dollar would make a rather poor safe haven right now, since much of the recent economic data has become disappointing.
There have been some improvements in the job market, but the labor market recovery remains unstable, swinging from gains to losses regularly. Additionally, home prices are still weak, and there are other economic fundamentals weighing on the US economy. With news of improved news out of the eurozone, and balanced against a weaker-looking US situation, it is little surprise that the greenback is down against most majors in Forex trading today.
At 14:27 GMT EUR/USD is higher at 1.3164, up from the open at 1.3081. GBP/USD is up to 1.5835 from the open at 1.5759. USD/JPY is lower at 76.1370, down from the open at 76.2650.

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