US Dollar Holds Its Own

US dollar is maintain its gains, and finding support, as the euro falters, and concerns about the global economy take precedence. Greenback is getting a boost as Chinese data, and European data, disappoint.

US dollar is finding support today in Forex trading as economic news reduces risk appetite. The slightly better jobless claims report in the United States shows that at least there are signs of recovery. This is opposed to the eurozone, where recession fears continue to grow and PMI continues to remain at three-year lows. Additionally, worries about the Chinese economy are on the rise, thanks to the latest disappointing manufacturing data out of the world’s most anticipated emerging market.
For now, greenback is turning in a solid performance. Support is also coming from gold prices, which are sliding. Gold is down more than 25 points, and below the $1,600 an ounce mark. Traditionally, gold moves inversely to the US dollar, so dropping gold prices often mean a higher greenback, especially against the euro. Between the risk aversion, and other issues, it is little surprise that US dollar is finding support.
At 13:12 GMT, EUR/USD is lower at 1.2658, down from the open at 1.2707. GBP/USD is down to 1.5688, down from the open at 1.5718. USD/JPY is higher at 80.1135, up from the open at 79.5550.

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