Risk Aversion Sends Dollar Index Higher

Concerns about the economies of different regions are weighing on riskier assets today. Indeed, risk aversion is on the rise again, and that means Forex traders are looking for safe haven. The result is a higher dollar, with the dollar index gaining today. US dollar is higher against most other majors, although it is lower against the Japanese yen.

Forex traders have been awaiting economic data, and what has been reported has been rather disappointing. In Europe, the PMI prints in Germany and in the European Union are lower than expected. Germany’s economy is especially important, since it is the largest in the eurozone and considered a leader. Additionally, the HSBC-PMI in China is also causing concern about economic growth.
In the midst of all of this, the news in the United States appears to be improving. Unemployment claims last week dropped to the lowest level since 2008, falling to 348,000. Even though there are still concerns about the US economy, it is still in something of a recovery. The situation in the United States might not be ideal, but it is still improving, instead of backsliding, and that only bolsters the appeal of the US dollar as a safe haven.
At 13:26 GMT EUR/USD is down to 1.3150 from the open at 1.3214. GBP/USD is lower at 1.591, down from the open at 1.5867. USD/JPY is lower at 82.9810, down from the open at 83.3920.

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