US Dollar Falls on European Policy Decisions

US dollar is falling today, losing ground against its European counterparts on the latest policy announcements. News that the ECB and the BOE are holding steady right now is sending the US dollar lower as expectations of continued easing weigh.

US dollar appears to be heading for more weakness as Forex traders compare the situation in the United States to the situation in Europe. After days of speculation that the Federal Reserve would decide to pull back some of its asset purchases sooner rather than later, all of it has come to nothing as economic data indicates that the US economic recovery is not proceeding as desired.
This stands in contrast to signs of improvement in the eurozone and in the United Kingdom. The rate decisions announced today indicate that the Bank of England and the European Central Bank are ready to pause stimulus efforts as improving economies provide some support to their currencies. This contrast with continued easing from the United States is weighing on the dollar today.
For now, it looks as though dollar weakness is the norm, but things could change quickly. All eyes are on Mario Draghi now, waiting for his official speech.
At 13:53 GMT EUR/USD is up to 1.3152 from the open at 1.3093. GBP/USD is up to 1.5462 from the open at 1.5405. USD/JPY is up to 99.0565 from the open at 99.0600.

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