US dollar is weakening today as optimism makes an appearance on the markets, and risk appetite improves. However, even though greenback is mostly down against other majors, it is holding ground against commodity currencies, which continue to drag on gold’s lackluster performance.
Greenback is heading a little lower against its European counterparts as better news helps risk appetite a little bit. Solid demand for Italian bonds is helping the euro, and the fact that the GDP data for the United Kingdom from the fourth quarter of 2012 came in as expected is helping the pound eke out gains against the greenback.
Also, better news about the economy is helping riskier assets, like stocks, as Fed Chair Ben Bernanke moves into day two of his semiannual testimony before the US Congress. The optimism is helping some high beta currencies against the greenback.
However, commodity currencies seem to be underperforming against the US dollar. Loonie is just eking out gains (helped by higher oil prices), and Aussie is also lagging a bit in its gains as gold prices continue turn in a lackluster performance.
At 15:54 GMT the US dollar index is down to 81.573 from the open at 81.864. EUR/USD is up to 1.3121 from the open at 1.3061. GBP/USD is up to 1.5176 from the open at 1.5126. USD/AUD is down to 1.0209 from the open at 1.0230. USD/CAD is down to 1.0252 from the open at 1.0262.
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