Dollar Much Higher on Eurozone Woes

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Dollar Currencies

The dollar is trading very bullishly versus its major peers this Wednesday afternoon following rumors that Germany is doing all it can do limit the potential for a Eurozone banking union. Also, the weak Spanish economy has increased the safe-haven status of the USD.

The EUR/USD is lower by 0.07% at $1.3039. The GBP/USD is weaker by 0.15% at the $1.6219 level.

The issue of leading German lawmakers attempting to alter proposals for the European banking union has really hurt the euro today, especially as it was much stronger earlier in the morning. The reality is that the German government is reluctant to give any more power to the European Central Bank or any other bodies.

The euro remains weak as Spanish Prime Minister Mariano Rajoy is reluctant about asking for a bailout amid the ECB going ahead with a bond-purchasing program.

From the U.K., Bank of England policymakers voted to keep rates unchanged at 0.5% by a 9-0 margin. In addition, they agreed to keep the asset purchase program at 375 billion pounds.

In early morning trading the Bank of Japan stated that it will expand its monetary easing program to 80 trillion yen and keep rates unchanged at 0.1%.

The USD/JPY has dipped 0.37% to 78.50 yen. The USD/CAD pair has slipped 0.04% to 97.38 Canadian cents. However, the USD is trading higher versus the majority of its other peers.

Stay ahead of economic figures from the U.S., New Zealand and Japan in the hours ahead. For example, the GDP figures from New Zealand at 22:45 GMT will be crucial in determining the strength of the NZD/USD later tonight.