The U.S. dollar started today’s trading session rather mixed. Investors felt that it was worth buying into the U.S. currency, even though there was a lot of weakness in early morning trading. The bearishness earlier this Thursday came about on the stock market rally in Asia. This drove demand lower for haven currencies. On the other hand, the demand for risky currencies was very high. This is why traders have tried to diversify their trading portfolios. The fact is that there is so much volatility in the forex market today.
The EUR/USD pair is trading lower right now by 0.02% at $1.2929. The USD/JPY forex pair is up today by 1.13% at 102.09 yen. This comes after the pair dived for the previous 3 trading days. It is vital to understand that the greenback has mad important gains versus a number of its other peers this Tuesday morning.
Traders are in the mood to take risks today, and we saw this with the Asian stock market rally earlier on. However, they are still very much attracted to the U.S. dollar. This is as the greenback offers traders very high returns each day. Moreover, there are a lot of factors backing the USD these days.
There is the forecast of bullish economic data from the American economy later today. There is expected to be positive consumer confidence data and optimistic housing data. Therefore, it is no wonder that there is so much upward pressure on the dollar. However, there are signs showing a weakening greenback. This shows that the dollar’s’ current strength may not be sustainable.