U.S. Dollar Falls in Forex Trading

The U.S. dollar is falling in forex trading on the currency market today as risk appetite makes an appearance. This optimism over the global economy began last week, and is carrying over into the first trading day of August. FX Street reports on some of the factors instilling confidence in forex traders:

The U.S. dollar weakened against majors, on optimism in markets that started last week, more specifically, after the release of the GDP in the U.S. which came better than expected. Investors have now more risk appetite on speculations their economies are recovering. On the other hand, large companies and banks are still releasing their earnings, which are coming better than analyst's forecasted.

With hope for the U.S. stock market (which is rallying today) and commodities, there is little need for the U.S. dollar. Indeed, the greenback has been a safe haven in currency trading, used for capital preservation, these last few months. Now that forex traders and others are feeling more confident about the economy, it is little surprise that the U.S. dollar is falling.