Safe haven currency US dollar is weakening today as optimism makes, an appearance on the markets, and risk appetite improves. However, even though greenback is mostly down against other majors, it is holding ground against commodity currencies, which continue to drag on gold's lackluster performance.
Euro has recovered some of its earlier losses against the US dollar, but the 17-nation currency remains vulnerable to the UK pound and the Japanese yen. Even though the latest fears about Italy have been assuaged slightly, there are still concerns about the eurozone's economic vulnerability, as well as the health of countries in the periphery.
From Chinese currency, The Chinese yuan advanced today as yesterday's comments of Federal Reserve Chairman Ben Bernanke reduced fear among Forex traders, increasing demand for currencies with higher yield
From Britains currency, The Great Britain pound demonstrated mixed performance today as UK GDP matched analysts' forecast, falling quarter-on-quarter, but growing on an annual basis
Finally The US dollar traded sideways today as risk aversion caused by the Italian election was trimmed by positive US macroeconomic data and comments of Federal Reserve Chairman Ben Bernanke, who defended the monetary stimulus
Meanwhile, The Australian dollar extended the decline against its US peer, as the indecisive outcome of the Italian election fueled the risk aversion sentiment among Forex traders. The New Zealand dollar paused its drop, but remained weak as the nation's trade balance posted an unexpected deficit
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