US dollar is lower today as risk appetite makes an appearance in the markets. As commodity prices rise, and equities see a bit of a reprieve from recent troubles, the greenback is pulling back. Concerns about Europe remain, but they are being trumped by other news — especially the imminent Facebook IPO.
In less than hour, the Facebook IPO will be launched, and that is the focus today. Equities are expected to be in favor today, and commodities are doing reasonably well. Also weighing on the US dollar is some speculation that the Federal Reserve will introduce more economic stimulus. With disappointing factory data, and with a jobs market (unemployment claims remained flat this week) that continues to show little improvement, concerns about the US economy remain. Quantitative easing is designed to weaken the US dollar, and if it is used, dollar weakness will persist.
For now, though, US dollar struggles are likely to be temporary. The Facebook IPO is generating interest and distracting from Europe, but when the excitement is over, the problems plaguing the eurozone will still be there.
At 12:54 GMT EUR/USD is up to 1.2713 from the open at 1.2697. GBP/USD is up to 1.5820 from the open at 1.5797. USD/JPY is higher at 79.2650, up from the open at 79.2780. The dollar index is at 81.341, down from the open at 81.506.
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