The U.S. dollar is gaining in forex trading this morning on the news that the U.S. economy is improving. Earnings reports yesterday, especially from Wells Fargo and other financial institutions, are spurring optimism.
Indeed, it's an interesting dynamic today in currency trading on the FX market. Even though risk appetite has improved, the greenback is gaining. Recently, the U.S. dollar has been benefiting from its status as a safe haven currency.
However, it is possible that forex traders are more comfortable with the U.S. dollar right now because the economy is showing signs of improvement while other economies -- especially the euro zone economy -- continue to show weakness. The euro is struggling in forex trading on economic weakness.
Until other economies start to show strength, the U.S. dollar will probably be preferred in forex trading. The underlying fundamentals (like national debt) are not terribly important right now while it appears that things are strengthening for the U.S. on the surface.
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