US dollar index is edging higher today, gaining ground on improved economic data. However, even with the earlier gains, against individual majors the greenback is mixed. Risk appetite is trying to push through, and forex traders are considering higher yielding currencies.
Optimistic comments from Federal Reserve Chair Ben Bernanke have helped spur a little hope for the US economy. On top of that, consumer sentiment rose in the United States, and the Empire State manufacturing index showed gains. All of this provided some support for the US dollar earlier in trading, and the dollar index is a little bit higher as a result.
However, greenback is giving back some of those gains against individual currencies, particularly the euro, as risk appetite comes sneaking back. Riskier assets are in demand, with stocks heading higher, and European indices turning in a mixed performance. As a result, the greenback is losing some ground, paring some of its gains, as focus turns from the economy to risk appetite.
At 16:09 GMT the US dollar index is a little bit higher, up to 80.545 from the open at 80.423. EUR/USD is a little bit lower, down to 1.3351 from the open at 1.3363. GBP/USD is higher, though, heading up to 1.5528 from the open at 1.5495. USD/JPY is up to 93.7195 from the open at 92.8800.
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