US dollar is losing ground today, especially against the euro, as Forex traders expect more easing from the Federal Reserve. The situation in the United States is one of uncertainty, and that is weighing on the US dollar, and providing the euro with the upper hand.
Greenback is down again as Forex traders await the Fed announcement tomorrow. Many expect that Ben Bernanke will announce some more easing for the US dollar, and that would weaken the currency and encourage inflation. At the same time, support for the euro is expected, and that is pushing the dollar lower against other major currencies.
Indeed, dollar is down pretty much across the board, including against the Japanese yen and other so-called safe haven currencies. With the expectation that more stimulus will be needed, and that the dollar’s value will be further diluted, it is little surprise that Forex traders prefer other currencies right now. Also helping is the risk appetite bleeding over from the expectations that the ESM will be upheld by Germany’s highest court.
At 14:22 GMT the dollar index has dropped to 79.985 from the open at 80.388. EUR/USD is up to 1.2827 from the open at 1.2759. GBP/USD is up to 1.6045 from the open at 1.5989. USD/JPY is down to 77.8215 from the open at 78.2940.
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