US Dollar Higher as Uncertainty Abounds

It’s all about the uncertainty today, giving the US dollar a boost as Forex traders nervously await a number of outcomes. From the Supreme Court’s ruling on the health care reform bill, to the EU summit underway in Europe, to concerns about how the losses from JP Morgan Chase’s “London Whale” are ballooning, it is little surprise that it’s all about the safe haven today.

Greenback is up against high beta currencies as Forex traders look for some measure of stability in an uncertain world. JP Morgan Chase shares are down at the stock market open, leading financials lower as investors process the news that the “London Whale” could cost as much as $9 billion. Additionally, concerns about the EU summit are also there. No one is sure that European leaders will really be able to solve the sovereign debt crisis threatening the eurozone.
On top of that, it’s a big day for health care reform. The US Supreme Court is expected to hand down a nuanced ruling on the 2010 health care reform law. Everyone’s waiting for the outcome — and the market response to it. It’s no wonder that the US dollar is dominating today.
At 13:34 GMT EUR/USD is down to 1.2433 from the open at 1.2469. GBP/USD is down to 1.5511 from the open at 1.5568.

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