US Dollar Mixed as Markets Look for Direction

US dollar is mixed today against other major currencies as the markets look for a little more direction. However, things to seem to be leaning toward risk aversion right now, and that could mean a higher dollar against high beta currencies.

Right now, Republican leaders are saying that they are open to a new deal on the fiscal cliff issue, and that they are willing to negotiate. With a special Sunday session already scheduled for Congress, and with little headway being made so far, some aren’t completely sure what this means.
For now, there are concerns about about economic data coming in for the United States, and still, in the background, is the expectation that more easing from the Federal Reserve will lead to a weaker dollar in the future. However, if fiscal cliff negotiations don’t go well, the greenback could see higher demand as a safe haven.
Right now, the dollar is higher against the euro, but lower against the yen and the pound.
At 14:27 GMT the US dollar index is up to 79.700 from the open at 79.660. EUR/USD is down to 1.3224 from the open at 1.3236. GBP/USD is up to 1.6134 from the open at 1.6100. USD/JPY is down to 86.0465 from the open at 86.1050.

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