Risk appetite, prompted by China’s trade surplus, is helping high beta currencies against the US dollar today. Greenback is down almost across the board as the situation for the global economy is expected to improve, and as risk assets fare in demand.
The latest news out of China found that exports are up 14.7 per cent from the period of a year earlier. The news is prompting risk appetite as many consider that the global economy might be on the road to recovery. With risk appetite returning, the US dollar is heading lower.
For the most part, the low-yielding US dollar is considered a safe haven. With the need for a safe haven diminishing, the dollar index is heading lower, and the greenback is down against most of its major counterparts, including the euro and the pound. Other high yielding currencies are also gaining ground against the US dollar. Higher gold prices are also weighing on the greenback.
At 16:05 GMT the dollar index is down to 81.82 from the open at 82.28. EUR/USD is also higher, heading up to 1.3179 from the open at 1..3078. GBP/USD is gaining ground rapidly as well, moving up to 1.5569 from the open at 1.5484. USD/JPY is a little lower, dropping to 98.8495 from the open at 99.0250.
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