Greenback is gaining today on the Forex market as risk aversion rises. Uncertainty over what’s next for Greece, and how it will affect the eurozone, is pressuring the euro and helping the US dollar. Additionally, many Forex traders and investors are waiting for the latest policy announcement from the Federal Open Market Committee.
One of the areas of speculation and interest today is what the FOMC will announce regarding interest rate policy, as well as the forecast for the economy going forward. There is a great deal of anticipation for the announcement, which will come at the conclusion of a two-day meeting.
Meanwhile, Forex traders are concerned about rumblings out of the eurozone. Angela Merkel has issued a warning about the situation with Greece — and its possibly dire consequences for the eurozone and the world. The result is that safe haven is being sought, and the US dollar treated as a safe haven currency.
The stability of the US dollar has long been a reason that it has been considered a safe haven. Backed by what many consider the most stable taxpayer base in the world, the greenback makes an ideal safe haven currency during times of uncertainty.
At 15:48 GMT EUR/USD is lower at 1.2974, down from the open at 1.3036. GBP/USD is also lower at 1.5581, down from the open at 1.5626. USD/JPY is higher at 78.2460, up from the open at 77.6700,
If you have any questions, comments or opinions regarding the US Dollar, feel free to post them using the commentary form below.
