US Dollar Struggles on Jobless Data, Fed Uncertainty

US dollar is struggling today, heading lower against many of its counterparts, thanks to uncertainty over when the Federal Reserve will begin tapering its asset purchases, as well as the latest jobless data.

The question everyone wants answered — from stock investors to Forex traders — is when the Federal Reserve will begin tapering its asset purchases. Recent comments from members of the Federal Reserve Board indicate that some are willing to start in September. However, there are still concerns over that timeline, since the US economy seems to be recovering in fits and starts.
The uncertainty over what the Fed will decide was only increased by today’s weekly jobless claims data. Initial unemployment claims ticked higher, but not as high as expected. With the labor market potentially on the mend, there are those who think that the Fed could begin tapering as early as September. But, at the same time, there are those who worry that the sluggishness of the US economy means that stimulus is still needed.
For now, there is enough uncertainty, and thought that the Fed will put off tapering, that the greenback is lower.
At 12:57 GMT EUR/USD is up to 1.3359 from the open at 1.3336. GBP/USD is up to 1.5508 from the open at 1.5489. USD/JPY is down to 96.1200 from the open at 96.3330.

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