In a mild morning for the currency markets, the dollar continues to lose value.
While Tuesday saw significant gains for the dollar against most major currencies due to the large-scale market rally, Wednesday saw a reversal that continues today.
The dollar is slipping thanks to "ongoing concerns about falling U.S. stock prices," said David Gilmore, a partner at
Foreign Exchange Analytics
. Gilmore cited several earnings shortfalls this morning as an example of the dominant market trend. While the U.S. economy is slowing, the euro is gathering strength. The euro was trading this morning at $0.8954, up from a close of $0.8913 yesterday. Surpassing the 89-cent level was considered a significant support for the euro.
"It's the change in expectations" that is pushing the dollar down, said Gilmore, coupled with worries about the outflow of capital from the U.S. The yen, contrary to general global trends, is down on the dollar this morning. Dollar/yen was recently trading at 110.69, up from yesterday's close of 110.34. Meanwhile, the euro/yen cross is making significant gains, hitting four-month highs earlier this morning. Euro/yen was recently at 99.14, up strongly from 98.25 yesterday.
Other major currencies continue to gain ground on the dollar. The British pound was trading at $1.4477 this morning, up from $1.4422 at yesterday's close. The Australian dollar was trading at $0.5492 this morning, also up from yesterday's close of $0.5480.
The Canadian dollar also continues to firm against the U.S. dollar, with the U.S. currency trading down this morning at C$1.5257, from a close yesterday of C$1.5284.
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