US Dollar Gains on Commodity Drop, Economic Gains

US dollar is heading higher today, gaining as better than expected economic data supports the greenback. Commodities are lower today, and a gold price below $1,400 an ounce is also helping the dollar in Forex trading.

Greenback is gaining today, thanks in large part to the unexpectedly good economic data just released. US GDP increased by 2.5 per cent in the second quarter of 2013, up from the initial estimate of 1.7 per cent. This better than expected figure is, once again, fueling speculation that the Federal Reserve will have to start tapering its asset purchases relatively soon.
Economic data is fueling the US dollar’s gains today, but that’s not the only think helping the greenback. Uncertainty surrounding Syria, as well as drops in commodity prices are helping as well. Gold prices are lower, dropping back below $1,400 an ounce, and oil prices are heading a little lower as well, in spite of the difficulties in the Middle East.
At 14:17 GMT the US dollar index is higher, rising up to 82.1110 from the open at 82.0010. Dollar is up against most of its major counterparts. EUR/USD is down to 1.3207 from the open at 1.3241. GBP/USD is also lower, dropping to 1.5476 from the open at 1.5504. USD/JPY is one of the few instances of a lower dollar, dropping to 98.2210 from the open at 98.3520.

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