US dollar index is slightly lower today as choppy trading is the norm. Many currencies are trading mixed right now, and that includes the greenback. With concerns about the eurozone, and with speculation about continued currency wars some countries attempt to stimulate their economies, there is some thought that the dollar will show relative strength overall.
Right now, there is enough risk appetite to help high beta currencies, particularly the euro, against the US dollar. Greenback is a little lower right now, with the dollar index slipping. The latest numbers on US home prices are out, and the news is filling some with optimism for the US economic recovery.
The S&P/Case-Shiller 20-city composite index inched up 0.1 per cent in January, bringing the year-over-year gain to 8.1 per cent. This new reading shows the strongest performance for the housing market in six years. As a result US stocks are rallying, and high beta currencies are getting something of a boost while the US dollar isn’t needed as a safe haven.
However, with the uncertainty remaining in Europe, and with Japan and the United Kingdom ready to ease more, there is a case for relative dollar strength the year.
At 15:27 GMT the dollar index is down to 82.80 from the open at 82.89. EUR/USD is up to 1.2874 from the open at 1.2849. GBP/USD is down to 1.5158 from the open at 1.5172.
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