US Dollar Higher as Uncertainty Grows

US dollar is higher as uncertainty grows in the eurozone. Concern about what’s next for the eurozone, and for the US economy, is the highlight as we start the week out, and that is providing a boost for the greenback as a safe haven. Forex traders are trying to wrap their heads around what’s happening right now, and the US dollar is higher as everyone takes a step back.

Risk appetite did make an appearance earlier, with the announcement that the pro-bailout/pro-austerity politicians had carried the day in Greece. Also helping was the agreement by eurozone officials to soften the austerity requirements for Greece. This news briefly boosted the euro.
However, the US dollar quickly gained ascendancy as Forex traders shifted their gazes to Spain and Italy. With concerns about those countries growing, and worries on the periphery about Portugal and Ireland, it’s little surprise that the US dollar is back in demand. Greenback is higher as Forex traders look for safe haven. US dollar is considered the most stable currency in the world, and Forex traders want to take advantage of that in a sea of uncertainty.
At 14:19 GMT EUR/USD is down to 1.2596 from the open at 1.2697. GBP/USD is lower at 1.5665, down from the open at 1.5710. USD/JPY is higher at 78.8795, up from the open at 78.7950.

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