Economic recovery concerns increase U.S. dollar demand in currency trading
The euro is heading lower in forex trading on the currency market as risk aversion sets in. The latest economic data coming out of Europe and Britain are not very encouraging, and that has investors worrying over the speed of an economic recovery. Indeed, with concerns about the economy at the forefront, forex traders are eschewing high beta currencies that offer more risk.
Not only is the euro down in forex trading, but the U.K. pound is as well. The U.S. dollar is seeing some safe haven demand in currency trading, and other low-yielding currencies, like the yen and the Swiss franc, are seeing some gains as well.
Until economic recovery is well and truly underway, there is likely to be more volatility than usually, and some continuance of support for the U.S. dollar in currency trading.
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