Right now, even though the US dollar is a bit lower against the euro, there is still evidence of dollar strength. The US dollar index has shown itself resilient this year, and there is a good chance that the greenback will continue to show relative strength as uncertainty wracks the financial markets.
While there is no way to say for certain what will happen next in any financial market, there remains enough uncertainty, especially in light of the continued difficulties in the eurozone, to provide relative strength for the US dollar. With economic concerns in Britain, and the sovereign debt and financial system issues (highlighted by the recent Cyprus trouble) that continue to plague the eurozone, it is little surprise that the dollar index has been doing reasonably well.
So, while the US dollar is down against the euro right now, there is a good chance that the greenback will retain some of its relative strength. As long as there is uncertainty, and as long as Forex traders feel the need to call on a safe haven, the US dollar is likely to keep some of its strength.
At 15:18 GMT US dollar index is up to 82.625 from the open at 82.623. EUR/USD is up to 1.2950 from the open at 1.2909. GBP/USD is slightly lower at 1.5121 from the open at 1.5122. USD/JPY is up to 95.1105 from the open at 94.5880.
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