The Canadian dollar is slightly higher in forex trading, moving a little bit higher on the strength of a weaker US dollar. The loonie is gaining as US dollar sinks under its bad news.

Additionally, loonie is being supported by oil prices right now. Oil prices are a little bit higher, and that is helping the Canadian dollar hold its gains -- even though risk aversion is setting in and would normally lead to losses for the loonie.

For now, though, Canadian dollar is just managing to hold its gains. It will be interesting to see how long it lasts. Poor economic data in the US, and renewed worries about Greece are likely to result in risk aversion soon. 

US dollar is lower in forex trading, heading down as concerns about the economy once again take center stage. Greenback is lower in currency trading, pressured as concerns about GDP and jobless claims take precedence.

Indeed, worries about US GDP are rising, and jobless claims are rising as well. This is in contrast with recent data out of the eurozone that has been better than expected. Eurozone data has beat expectations, and that is helping the euro -- even though there are still issues related to Greek debt.

For now, the dollar index is losing ground, but the situation is still volatile, and the story could change quickly. It will be interesting to see what happens next, and what news shapes the forex market going forward.

Jobless claims are higher in the US, rising sharply as concerns about the economy come to the fore. Jobless claims rose to 377,000 in the week ending January 21, 2012, and that is causing some concern.

Worries about the US economy, which include a slightly disappointing GDP figure from the fourth quarter of 2011, are once again sending the greenback lower in currency trading.

Indeed, US dollar is lower against the euro in forex trading, as well as against other currencies, including the pound and commodity currencies. The dollar index is lower, but things may change as the day progresses. Dollar has been hit, but this news also usually means a reduction in risk appetite. As a result, the greenback could soon turn around as Forex traders look for safe haven. 

UK pound is lower against the euro in forex trading today, dropping as concerns about the British economy acquire prominence. The British economy, which appears to be struggling, stands in contrast to the eurozone economy, led by a Germany that appears to be seeing improvement.

Euro is also higher in general as commodities and other risk assets rise on the latest from the US Federal Reserve. With so much risk sentiment, euro is doing well indeed. And with so much confusion over the British economy, it is now surprise that the sterling is lower.

For now, EUR/GBP is gaining. However, Greek debt worries could change things around again, sending the euro lower against the pound in forex trading. It will be interesting to see what happens next. 

The Aussie is rising today, thanks to newfound popularity with the Russians. The Russian central bank deputy minister announced that the Australian dollar will be used as a reserve currency going forward.

Indeed, Russian announced that the Aussie will begin being used as a reserve currency possibly in February. This news has provided a boost to the popularity of the Australian dollar in forex trading, since there will be increased demand.

Also helping the Aussie today is the rise in gold prices. Aussie relies on gold prices for support, and the surge in gold right now is positive for the Australian dollar. It is little surprise that the Aussie is doing so well in currency trading on the FX market today. 

Here comes the risk rally. Euro is heading higher in forex trading, gaining as the markets look forward to continued stimulus from the United States.

Yesterday, Federal Reserve Chair Ben Bernanke announced that interest rates would remain near zero probably until 2014. Additionally, with the release of the latest negative jobless claims data, many expect that the Fed will engage in more quantitative easing.

All of this is sending commodities and equities higher today, and weighing on the US dollar. As a result, the euro is getting a boost today, helped along by a renewal of Greek debt talks and recent positive news about the German Ifo.