The dollar is much stronger versus its peers today. This is as the demand for safe-haven currencies rises. There are mounting fiscal woes with regards to the U.S. economy. In addition, there has been no concrete agreement by European policymakers on how to rescue the Eurozone. All of this shows just why traders have a lack of confidence in the leading assets at the moment. The GBP/USD pair is lower by 0.05 percent at $1.5870. The AUD/USD pair is down 0.28 percent at $1.0400.
There is a lack of demand for the European single currency today due to the issue of Greek insolvency. It is a fact that Greece recently passed her budget for next year, but this has failed to boost the euro. There may also be a delay in the next bailout of the nation. The EUR/USD pair is down 0.33 percent at $1.2668.
There is a lot of demand for the Japanese currency today. Traders have decided to buy into the yen this Monday due to the lack of demand for riskier currencies. The USD/JPY pair is lower by 0.34 percent at the 79.22 yen level. Further losses may be on the cards later on, so traders may continue to sell the pair.
Equities in Europe fell to a two-week low on Eurozone finance ministers meeting to discuss the woes of the Eurozone and Greek aid. The Stoxx Europe 600 Index fell 0.3 percent. The U.K.’s FTSE 100 and the DAX were little changed. The CAC 40 dipped 0.4 percent. There was also weakness with regards to U.S. stocks yesterday due to the U.S. fiscal cliff. In addition, the weaker Japanese economy has pushed Asian stocks lower this morning.
Crude oil has fallen in the previous two trading sessions. It is also lower this Thursday morning by 56 cents at $85.51. There is less demand for the black gold as of late due to a number of factors. There is a growing supply of the commodity in both the U.S. and China, two of the world’s biggest consumers of the energy. In addition, it is expected that the inventories rose last week. The stronger dollar has also put a lot of downward pressure on crude prices this morning. Traders just do not have the confidence to put their money into higher-yielding assets this Tuesday. Further losses may be on the cards for crude oil today.