US dollar is heading higher today, strengthening as Forex traders demand safe haven currencies. Economic data out of the eurozone and out of China are weighing on riskier assets today, and the greenback is getting a boost.
Dollar weakness caused by the recent quantitative easing announcement from the Federal Reserve is being replaced by strength as concerns about global economic slowdown are coming to the forefront of Forex trader concerns. The latest PMI data out of the eurozone shows the worst reading since June 2009, and China’s factory data is also disappointing.
With economic news pointing to the possibility of a global slowdown — and recession fears high for the eurozone — it is little surprise that the US dollar is once again in demand. Forex traders are looking for stability right now, and the US dollar remains one of the most stable currencies. As a safe haven currency, greenback is sought after, and right now Forex traders are looking for a little safety.
For now, the dollar is heading higher. With economic concerns trumping QE announcements, it is little surprise that the greenback is being turned to. The only major currency higher than the dollar right now is the yen.
At 14:36 GMT EUR/USD is down to 1.2944 from the open at 1.3052. GBP/USD is down to 1.6188 from the open at 1.6221. USD/JPY is down to 78.2330 from the open at 78.3820.
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