US dollar is a lower against other majors right now, but the currency is paring its losses as uncertainty threatens to come creeping back into the markets. High beta currencies are higher against the greenback for now, but they are losing some ground, and threatening to move lower.
A lot of what has been providing risk appetite in the markets is starting to unravel a little bit. There is enough optimism for some currencies to hold on to some of their gains against the US dollar, but currencies like the pound and the euro are off their earlier highs.
One of the biggest concerns is that it appears that the fiscal cliff budget battle has flared up once again between President Barack Obama and House Speaker John Boehner. The GOP has rejected the compromise that had been building, and Obama is promising to veto the current GOP plan if it actually makes it to his desk.
For now, the US dollar remains mostly lower against other majors, but it could start moving higher if the situation isn’t resolved.
At 14:21 GMT EUR/USD is up to 1.3279 from the open at 1.3226, and off the earlier high of 1.3296. GBP/USD is up to 1.6277 from the open at 1.3247, and down from the earlier high of 1.6298. USD/JPY is lower at 84.2700, down from the open at 84.4070, but off the session low of 84.4300.
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