US dollar is gaining ground as Forex traders look for safe haven amidst concerns about what’s next. Lackluster data from China and from the United States itself has many concerned about what could be coming for the global economy. The result is that Forex traders are looking for a little more safety right now, and the greenback is benefitting.
Fears about the rate of global economic growth are once again coming to the fore. Concerns that China won’t be there to pull the world out of its economic doldrums are mounting. On top of that, even though the United States economy has been showing some small improvements, things are far from a growth rate that many prefer to see.
It’s not helping, either, that eurozone problems continue to dominate. Once again, there is disagreement between German Chancellor Angela Merkel and French President Francois Hollande about what should be done to ensure that the sovereign debt crisis doesn’t repeat itself. With a disagreement over when to implement the banking union for the eurozone, and with recession looming for the 17-nation currency region, it is little surprise that, once again, Forex traders are turning to the stability of the dollar.
At 12:26 GMT EUR/USD is down to 1.2912 from the open at 1.2978. GBP/USD is down to 1.6194 from the open at 1.6238. USD/JPY is down to 78.0085 from the open at 78.1600.
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