US Dollar Index Falls Earlier, But is Gaining Ground Now

US dollar index is lower today, falling overall as a degree of optimism returns to the markets. Many expect a Greek debt deal to be done today, and that means that there has been some demand for high beta currencies in earlier trading. Now, though, the US dollar seems to be gaining some ground as some of that risk appetite fades and the Greek situation looks a little less certain.

Greenback is rising as the euro and the UK pound pare earlier gains — and even move into negative territory. The European Central Bank announced that it might hold back on helping Greece until certain elements of the debt negotiation are in place. This news has prompted some to speculate that things aren’t going well and that the ECB may not be as prepared to help with the Greece bailout as everyone thought.
Now, the US dollar is being sought as a safe haven from the turmoil in Europe. Also helping the US dollar is better news coming out of the stock market. Earnings news has been relatively positive, and there are hopes that this will boost confidence in the US economy.
At 14:24 GMT EUR/USD is falling to 1.3251 from the open at 1.3261. GBP/USD is down to 1.5869 from the open at 1.5896. USD/JPY is higher at 76.8545, up from the open at 76.7655.

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