US Dollar Rises Slightly Against Pound, Euro

US dollar is rising slightly against the pound and the euro, reversing some earlier weakness against the currencies earlier. In earlier trading, greenback slipped as speculation began that the Fed would end its policy of low interest rates before the middle of 2013.

Today marks the beginning of the last Federal Reserve meeting of the year, and there are indications that recent progress for the US economy will render easing measures unnecessary. The news initially sent the greenback a little lower against its European counterparts, but the dollar seems to be regaining some of the lost ground.
Indeed, Forex traders are wondering whether or not anything has truly been resolved in the European debt crisis. And, even though housing prices data showed improvement over last month in Britain, there are still concerns about the fragile economic recovery in that country.
With a degree of uncertainty remaining, it is little surprise that the US dollar is once again making progress against its high beta counterparts. More movement is likely, though, once Ben Bernanke reports on the outcome of the Fed’s meeting.
At 14:16 GMT, EUR/USD has dropped to 1.3176, down from the open at 1.3188. GBP/USD is also lower now, down to 1.5568, from the open at 1.5584. USD/JPY is lower at 77.8675, down from the open at 77.9170.

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