US dollar got a bit of a boost earlier today against its high beta counterparts, thanks to concerns about what’s next for the global economy. A lot of data misses last week have many concerned about what could be coming, and that means safe haven demand and a higher greenback. However, US dollar is falling a bit now.
Data misses last week from around the world are weighing on equity markets today. While the equity markets did get a bit of a boost toward the end of last week, many traders and investors have had the weekend to consider the situation, and risk aversion has set in — at least a little bit.
There is also a bit of uncertainty as Forex traders look to tomorrow’s testimony by the Federal Reserve before Congress. This will be the first time Janet Yellen shares her thoughts with Congress as the head of the Fed. There is a great deal of anticipation surrounding this event.
Some of the greenback’s earlier gains are being erased, but there is still an element of risk aversion.
At 14:39 GMT EUR/USD is up to 1.3634 from the open at 1.3612. GBP/USD is up to 1.6405 from the open at 1.6399. USD/JPY is down to 102.7935 from the open at 102.4980.
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