US Dollar Index Gains Slightly on Euro Weakness

Even though the US dollar’s performance against its major counterparts is mixed, the dollar index is a little bit higher, mostly due to current euro weakness.

There are plenty of mixed signals on the Forex market right now. Worries about what’s next for the eurozone are weighing on risk appetite a bit, although there is enough hope elsewhere that currencies like the Canadian dollar and the UK pound are gaining against the US dollar.
Right now, the factors influencing the greenback are many — and sometimes contradictory. The US economy continues to show signs of improvement in the wake of Hurricane Sandy, with jobless claims falling for a third straight week. There hasn’t been progress on the fiscal cliff issue, but few believe that politicians will really let things go too far.
Instead, there is a lot of focus today on the eurozone, and what might be coming on the front. ECB President Mario Draghi is making his speech, and Forex traders will listen for clues as to what is coming, and they will make decisions based on what he says, as well as what happens in the United States.
At 14:25 GMT the US dollar index is up to 79.936 from the open at 79.811. EUR/USD is down to 1.3029 from the open at 1.3068. GBP/USD is up to 1.6115 from the open at 1.6098. USD/CAD is down to 0.9914 from the open at 0.9917.

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