US Dollar Heads Higher as Risk Aversion Take Hold

US dollar is heading higher as risk aversion appears in the market, and as commodities continue to struggle. There is a lot happening right now that points to a higher greenback, and it is little surprise that the US currency is once again moving higher against its major counterparts.

US dollar is gaining ground today against its major counterparts, thanks in large part to much of what’s happening around the world right now. Greenback’s gains are mostly modest, but they are present.
Right now, many Forex traders are in “wait and see” mode, looking ahead to next week’s Federal Reserve meeting to see whether or not policymakers will raise rates. There is some speculation that a rate hike could come, in spite of the worries about a potential global slowdown led by China.
Risk aversion has returned to the markets, and that is helping the dollar to an extent. Traders are looking for a safe haven, and the euro and pound can’t provide that right now. Another reality helping the greenback is the fact that commodities continue to struggle. Gold and oil are both down, and that is providing some support for the dollar.
At 14:10 GMT EUR/USD is down to 1.1270 from the open at 1.1279. GBP/USD is down to 1.5421 from the open at 1.5446. USD/JPY is up to 120.7700 from the open at 120.6220.

If you have any questions, comments or opinions regarding the US Dollar,
feel free to post them using the commentary form below.

Leave a Reply

Your email address will not be published. Required fields are marked *