US Dollar has come a bit down giving markets a breather, showing positive signs following a tension-filled two days. European stocks continue to struggle however US stocks are picking up based on positive economic data.
Data on jobless claims are positive, with fresh claims decreasing to 388,000 whereas data on the housing market are better than expectations owing to drop in home inventories. All this is showing positive signs towards development of a little risk appetite in Forex market.
Some currencies are improving with respect to the Dollar; even Japanese yen is gaining over the US dollar. Euro is putting in great efforts to achieve peak session values while the Pound getting close to re-achieving the high reached earlier in the day. Canadian Dollar too seems to be improving against its US counterpart.
With the improvement of economic news in the US, the Dollar is expected to not do very well during Forex trading. The scenario can change if the focus alters to euro-zone problems.
As a lot of things keep happening in Europe, the problems persist there, hence doubts creep in at the thought that Euro will be able to sustain a position of strength for a long time against the US Dollar.