Risk appetite is making an appearance as investors show optimism through higher stocks. As a result, the US dollar is mostly lower against other majors today. Greenback is lower against the euro, pound and yen today.
Even though the US dollar is mostly lower in Forex trading today, the difference isn’t terribly large at this point. Indeed, for the most part, major currencies have been rangebound. Even though good news in the United States (due mostly to Alcoa earnings) is giving a boost to risk appetite, there are still plenty of concerns about what’s next for Europe.
Indeed, the focus is off Europe for a little bit, but after the meeting between Angela Merkel and Christine Lagarde, the focus could quickly shift back to the situation in the eurozone. So, even though the US dollar is lower for now, things could change lightning-quick. In fact, many expect things to change; UBS has expressed the opinion that the US dollar will be in high demande during 2012, indicating that the modest gains seen by the euro today could easily be erased by tomorrow.
At 15:38 GMT EUR/USD is slightly higher at 1.2771, up from the open at 1.2766. GBP/USD is also only a little higher, rising to 1.5470 from the open at 1.5458. USD/JPY has moved slightly lower and is trading at 76.8400, down from the open at 76.8575.
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