The greenback is one of the weakest currencies this Wednesday, as traders have decided to take more risks. They have ditched safe-haven currencies for riskier ones such as the Aussie. The USD/CAD pair is lower by 0.02 percent at 99.92 Canadian cents. The AUD/USD pair is higher by 0.11 percent at $1.0376. The dollar has also lost a lot of value versus a number of its other peers in the latest round of trading.
There is limited demand for the European single currency today. This is after the euro did make some important gains in the previous day of trading. This comes before data today which may show that the Eurozone unemployment rate climbed to an all-time high of 11.5 percent. The EUR/USD pair is unchanged this morning at $1.2958. The euro has slid several pips versus the pound in the past hour.
The Japanese yen is one of the weaker currencies today, as it slides due to the risk appetite in the capital markets at the moment. The losses also come after the Bank of Japan went ahead with further stimulus measures to boost the Japanese economy yesterday. The USD/JPY pair is actually trading lower this morning by several pips at 79.60 yen. These losses may be extended in the next few hours.
Crude oil made an impressive comeback during the latter hours of trading yesterday. This was after declining in the early hours of trading. Crude benefited from a weaker dollar and on the forecast that demand will climb in the U.S. after the passing of Hurricane Sandy. The energy is higher this morning by 29 cents at the $85.97 level. Traders have decided to buy into the commodity today due to the dollar falling yet again and as oil has been undervalued lately. Therefore, the gains we are seeing now for crude oil are quite natural. It is important that economic data today is positive in order to support crude prices in the next several hours of trading.
Gold did started Tuesday’s trading session lower, but ended up making impressive gains as the trading day dragged on. This was after the precious metal has tumbled in recent weeks. Gold has been helped by a weak dollar, which is important as both the dollar and gold trade inversely. The commodity has also been supported by a return of risk appetite in the markets. It is higher today by 15 cents at the $1,712.25 level.