News » US Dollar Mostly Weaker

Great Seal of the United States on one-dollar billGreenback is mostly weaker today, thanks to a bit of optimism in the markets. Consumer confidence data has provided a degree of optimism for Forex traders, and that means the dollar isn’t needed as a safe haven.

However, things could change fairly quickly. Some of the earlier optimism is fading, thanks to the latest numbers regarding home prices. While consumer confidence data points to the idea that spending could resume and help the US economy, the falling home prices, as indicated by the Case Shiller index,  indicate that the economic recovery in the US still has a ways to go.

For now, though, Forex traders are mostly focused on the good. Euro and pound are higher against the US dollar, and mostly holding on to those gains. The Canadian dollar, though, is falling back. After seeing some success earlier today, the loonie is now heading down in Forex trading against the US dollar.

The latest economic data is giving traders and investors plenty of food for thought. Eventually the situation in Europe will have to be revisited, and other US economic data (include jobless claims) will have to be considered. But, for now, a bit of optimism is showing through and helping some of the high beta currencies.