Dollar Retains Support as Safe Haven

The US dollar backed off a little today following yesterday’s gains. The currency remains strong as signs of slower global growth support demand for the greenback in its role of a safe haven.
There were plenty of reasons for investors to seek safety. One of them was the downward revision of the global growth forecast by the International Monetary Fund. Another was the lackluster growth of the Chinese economy. While the quarterly data was not terrible, China’s economic expansion for the whole 2014 was the slowest since 1990.
The situation in the eurozone also feeds the need for safety. With prospects for quantitative easing from the European Central Bank and concerns about Greece, traders feel that they need a haven.
EUR/USD ticked up to 1.1562 as of 2:14 GMT today following the drop from 1.1604 to 1.1548 yesterday. GBP/USD gained from 1.5142 to 1.5150. USD/JPY down to 118.46 after yesterday’s jump from 117.56 to 118.79 (1.1 percent).

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