Better Data Boosts Risk Appetite, Sending US Dollar Lower

US dollar is moving lower right now, thanks to improved risk appetite. Most of that risk appetite is coming from enthusiasm over better data in the United States. Improvements to the US economy are helping high beta currencies, even after continued disappointment in Europe and China.

Good news in the United States is providing a boost to high beta currencies, and sending the US dollar lower, as risk appetite returns to the markets. Jobless claims in the United States fell to 370,000 last week, dropping by 2,000. Additionally, there was a rise in US durable good orders of 0.2% for April. This good news is providing some relief from all of the bad news coming out of Europe.
The sovereign debt crisis continues to dominate in the eurozone as European Union leaders look for a way for Greece to remain in the 17-nation currency zone. But euro is regaining ground as the good news in the United States boosts high beta currencies — in spite of troubles elsewhere. Forex traders are ignoring disappointing news in China and Europe in favor of a little optimism.
At 13:23 GMT EUR/USD is up to 1.2595 from the open at 1.2582. GBP/USD is higher at 1.5712, up from the open at 1.5692. USD/JPY is lower, down to 79.4700 from the open at 79.4750.

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