US dollar is heading lower as the week comes to a close, heading down as Forex traders remain optimistic about the eurozone. Euro is still getting some love from the fact that the ECB has released a bond purchase program, and that means a lower greenback.
Interesting forces have been at work on the US dollar recently. There are concerns about the US economy. Even though estimates for job growth for August had been an increase of 125,000 jobs, the nonfarm payroll numbers came in at 96,000, with the unemployment rate dropping to 8.1%. However, the situation is still moving slowly, and that weighs a bit.
Additionally, continued slow growth for the economy also means that there is an increased possibility of QE3, which could lead to a weaker dollar as more money is added to the economy. There isn’t a lot supporting the US dollar right now, between an enthusiasm for Europe and speculation about what’s next for the US economy.
As a result, the greenback is likely to continue to move lower — at least for the time beting. There just isn’t much to provide a boost.
At 12:52 GMT EUR/USD is up to 1.2764 from the open at 1.2629. GBP/USD is up to 1.5983 from the open at 1.5932. USD/JPY is down to 78.3135 from the open at 78.8450.
If you have any questions, comments or opinions regarding the US Dollar,
feel free to post them using the commentary form below.
