US dollar is on the rise today, thanks to risk aversion. With concerns in Europe, and uncertainty about the impact of the US Supreme Court ruling on health care reform, the greenback is in demand as a safe haven.
As European leaders meet this week in a summit to try to find a solution to the sovereign debt problems that beset them, the US dollar is on the rise against its major counterparts. Few are hopeful that something substantial will come out of the next round of meetings. There have been too many disappointments in the past, and the fears for Europe are growing.
And, even though new home sales surged in May, there are still plenty of concerns about what’s next for the US economy. Right now, the main concern is the impact if the US Supreme Court rules against the 2010 health care reform law. Things could change rapidly, and put stress on an economy that is already have difficulty in terms of recovery.
With so much uncertainty, risk aversion is high, and that means that Forex traders are turning to safe haven currencies. US dollar is on the rise, and is likely to maintain its strength for some time.
At 14:55 GMT EUR/USD is down to 1.2490 from the open at 1.2549. GBP/USD is down to 1.5562 from the open at 1.5571. USD/JPY is down to 79.6045 from the open at 80.4450.
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