Cautious optimism has returned to the markets today, bringing risk appetite and sending the US dollar lower against other major currencies. Corporate earnings are encouraging once again, and most of the European Union countries signed on to a treaty requiring tougher fiscal rules. The result is that many investors and Forex traders are feeling more optimistic about what’s next for the global economy, and that means the US dollar isn’t needed as a safe haven.
Greenback is heading lower as corporate earnings from Exxon and Pfizer help the cause. Additionally, there are high hopes that the Kindle Fire will result in a boost of Amazon‘s profits. With all this corporate earnings good news, it is little surprise that there is some interest in riskier assets.
On top of that, the impending Facebook IPO is expected to make a big splash. Some think that it could help support the US dollar, while others think that it will be one more event that adds to risk appetite and reduces the need for the greenback as a safe haven. Either way, the IPO is much anticipated.
For now, US dollar is lower against majors, falling back as Forex traders look for higher yields in this risk-friendly environment.
At 14:26 GMT EUR/USD is higher at 1.3163, up from the open at 1.3144. GBP/USD is up to 1.5777 from the open at 1.5711. USD/JPY is lower at 76.3169, down from the open at 76.3610.
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