By: Barbara Zigah
As reported at 9:31 a.m. in London, the U.S. Dollar slipped against major currencies, touching on a 6-week low versus the single currency Euro as investors move back into higher risk, higher yielding currencies. Investor speculation based on improved U.S. corporate earnings reports and higher share prices fueled the move away from safe-haven currencies such as the U.S. Dollar and the Japanese Yen. Versus the U.S. Dollar, the Euro traded at $1.4222, an increase of .9%, though at one point it had been as high as $1.4235, The U.S. Dollar Index, a gauge of the American currency’s strength versus a basket of six major currencies, slipped nearly .5% to trade at 78.928 .DXY. The U.S. Dollar managed to hold on to weak gains versus the Japanese Yen, trading at 94.61 Yen, a gain of .5%.
Higher risk currencies are expected to continue the momentum and hold onto last week’s gains, at least in the short term. Investors continue to be encouraged by signs that the global economy is on the mend, especially following last week’s earnings reports out of the United States which were better than anticipated. More U.S. bank earnings reports are expected out this week, and investors expect to see strong results which will support their decision and put the greenback under increased pressure.
Rising Appetite for Risk pushes down U.S. Dollar
After working on Wall Street, Barb began her second career as a freelance writer at Daily Forex, where the CEO recognized fresh, untapped potential and was willing to give her a try. She’s never looked back. Since then, she’s worked steadily as a freelance writer and editor in the financial services and Forex-related industry.