US dollar is moving sideways today, thanks to surprisingly good earnings news from some quarters, and many treating the European debt crisis as though it is almost resolved.
Surprisingly, aluminum giant Alcoa beat earnings estimates and that has some thinking that maybe China isn’t having the problems that everyone seems to think it is. Earnings season is underway, for the United States, and the tone is more positive than expected, providing other currencies the ability to edge in on a little bit of risk appetite.
However, gains for other currencies have been somewhat limited. Even though some traders act as though the European debt crisis is all but solved, there are plenty of hurdles. And the idea that concerns about China might be overblown still doesn’t change the fact that there is slowing.
Additionally, there is some trepidation associated with the today’s release of the Beige Book from the Federal Reserve. There is still plenty of uncertainty, so it’s no surprise that big moves aren’t really anticipated for today.
At 13:22 GMT EUR/USD has moved from being slightly higher to being slightly lower at 1.2882, down from the open at 1.2884. So far, GBP/USD has managed to cling to its gains, and is up to 1.6015 from the open at 1.6002. USD/JPY is a little higher at 78.3240, up from the open at 78.2565.
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