US Dollar Strengthens as Eurozone Concerns Resurface

US dollar is strengthening in Forex trading as concerns about the eurozone continue to weigh on world markets. Slightly disappointing data in the United States, along with worries that the debt crisis in Europe isn’t properly contained, are sending Forex traders looking for safe haven, and that is boosting the greenback.

Greenback is gaining against its major counterparts — except the Japanese yen — today as concerns about Europe dominate the financial headlines. The world awaits Spain’s budget, due to be released on Friday, and worries that it will prove that debt contagion is not contained are running rampant. Protests against austerity are taking place in Spain, and there are concerns that could influence the budget. Not only that, but economic confidence in the eurozone slipped a little bit, instead of rising slightly as expected.
Additionally, there are concerns about data out of the United States. Even thought the last GDP data remained unrevised, and even though unemployment claims fell slightly, there are still concerns about economic growth. Many feel as if the US economy isn’t growing fast enough, and that is weighing on risk appetite and increasing demand for the US dollar.
At 13:21 GMT EUR/USD is lower at 1.3268, down from the open at 1.3319. GBP/USD is down to 1.581 from the open at 1.5889. USD/JPY is lower at 82.0400, down from the open at 82.8950.

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