The U.S. Dollar is trading better against the Euro and British Pound as Forex traders await today’s European Central Bank and Bank of England Policy statements. The Dollar is also gaining against the commodity-linked currencies, helped by lower gold and crude oil. Weaker equity markets are putting additional pressure on higher risk currencies while underpinning the lower yielding Japanese Yen.
U.S. Treasury Secretary Geithner is in Beijing this morning to discuss the Chinese currency and other economic issues. The visit by Geithner is a good sign that China is open to the idea of letting its currency rise against the Dollar.
The EUR USD is trading lower overnight. Pressure continues to mount on this currency because of growing concerns that Greece will default on its debt. The spread between Greek Bonds and German Bunds is widening, making it difficult for Greece to finance its debt.