US Dollar Drops on Profit Taking and Repositioning

US dollar is down against most of its major counterparts on what many consider profit taking right now. With Forex traders preparing to reposition themselves in light of the next round of economic data and predictions for central bank movements, it is little surprise that some profit taking is happening.

Greenback is lower today as Forex traders appear to be repositioning themselves and taking profits. The dollar index is lower, as the greenback is down against the Japanese yen, euro, and UK pound.
Right now, many Forex traders are pondering the effects of rising Treasury yields, as well as concerns about the latest economic news out of Europe. There is also speculation that the Federal Reserve is preparing to pull back its asset purchase program, reducing the quantitative easing program that has been in effect for years.
With all of these bits of information to consider, it is little surprise that many Forex traders are taking profits now, and then resetting for what might be next for the global economy, and for currencies.
At 15:54 GMT the US dollar index is down to 83.6300 from the open at 84.3180. EUR/USD is up to 1.2941 from the open at 1.2855. GBP/USD is up to 1.5113 from the open at 1.5040. USD/JPY is down to 100.9700 from the open at 102.3725.

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