The US Dollar has been rounding off its gains from earlier trading sessions ahead of the earnings announcements in the US equity markets. Traders are wary of possible downturns in the US markets, as the general consensus on the health of US corporates has turned to that of risk aversion. As uncertainty returns to the US markets, traders are squaring off holdings, with the Dollar having lost about 20 bips in today’s trade at the time of writing this report.

The US Dollar has however, been gaining ground against other major high-yield currencies, such as the South African Rand (ZAR) and South Korean Won, as currency traders shed some optimism about the recovery of the global economy. The Dollar had fallen on Monday, 11th January 2010, on account of negative jobs data that suggested a further reduction in the job force, which further exacerbated risk aversion in currency traders.