US dollar is heading lower today, thanks to a solid injection of risk appetite to the currency markets. All the news seems to be good, and that means that high beta currencies are in demand while the US dollar softens.
Greenback is down today as risk appetite returns to the market, boosting high beta currencies, and, particularly, the euro. Most of the focus is on the eurozone right now. Angela Merkel, Germany’s Chancellor, delivered a pro-euro speech that is providing some optimism. Additionally, there are rumors that Spain is ready to ask for aid.
On top of that, there is good news out of the United States that is helping global risk appetite. Consumer prices rose 0.6 per cent in September. Additionally, earnings news has been pretty good so far. Today’s news that Vikram Pandit is out as Citi CEO isn’t really weighing on the markets; instead there is focus on Goldman Sachs earnings.
With all the good news, and the enthusiasm, it is little surprise that Forex traders are looking for better yields right now. US dollar is down almost across the board.
At 13:39 GMT EUR/USD is up to 1.3043 from the open at 1.2948. GBP/USD is up to 1.6119 from the open at 1.6070. USD/JPY is up to 78.7825 from the open at 78.6400.
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