Greenback Heads Higher in Forex Trading

[GFTforex]

U.S. dollar in currency tradingThe greenback is heading higher in forex trading on the currency market today as risk appetite dulls. The U.S. stock market has opened lower, unable to retain yesterday's gains. Additionally, there are rumors that policy makers will attempt verbal intervention in order to help keep the dollar from selling off when the global economy starts to improve.

For now, though, the U.S. dollar is gaining in currency trading on the fact that investors are wary of the risk trade. With equities lower and concerns about the speed of economic recovery right now, it is little surprise that the dollar is showing some movement to the upside.

MarketWatch reports on the decline of the risk trade today on the currency market:

But willingness to continue piling into riskier assets faded in Asian trade Friday as the Japanese yen gained ground on a hawkish, or more anti-inflationary, tone from the Bank of Japan, said Boris Schlossberg, director of currency research at GFT.

An unexpected drop in German retail sales trimmed support for the euro, he said.

See Also

• U.S. Dollar in Currency Trading
  Forex trading on the currency market