US dollar index is heading higher today, gaining ground as a bit of uncertainty sets in ahead of central bank announcements out of the eurozone and the United Kingdom. European currencies are casualties against the greenback today as speculation about what’s next permeates the markets.
Even though risk assets — stocks — are gaining ground today, high beta currencies are faltering. The US dollar index is gaining ground today, thanks to a bit of uncertainty regarding central bank decisions coming tomorrow.
Also helping the US dollar is the continued idea that the US economy is in somewhat better shape than European economies. The latest ADP data indicates that the private sector added a seasonally adjusted 198,000 jobs to the US economy last month. While the news is somewhat positive, it doesn’t take into account the budget sequester.
For now, though, there is enough uncertainty about what’s next for European economies to help push the US dollar index higher today. Central bank heads are expected to announce nothing new tomorrow; instead, Forex traders will be waiting for analysis of what lies ahead.
At 15:58 GMT the US dollar index is up to 82.373 from the open at 81.986. EUR/USD is down to 1.2994 from the open at 1.3051. GBP/USD is down to 1.5050 from the open at 1.5126.
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