US Dollar Gains Ground Following Economic Data

Is the US dollar getting ready for a revival? With a recovering economy, the United States looks poised to surge ahead of other economies, and the greenback is reclaiming its strength as a premier world currency.

The latest economic data to confirm a resurgence in the US economy is the trade deficit data. According to the US Commerce Department, the trade deficit in the United States dropped to $34.3 billion for October. This is the lowest level in four years. Exports are picking up, and imports are dropping.
An energy boom is part of that number. The United States is actually exporting more oil, and having more oil at home means less in terms of energy imports.
On top of the latest trade deficit data, there is other good economic news. The housing market is recovering, and the unemployment rate is falling (albeit slowly). With these combined improvements, the Federal Reserve has begun the taper, and that means that the greenback is likely to continue to strengthen.
At 16:05 GMT the US dollar index is up to 80.8950 from the open at 80.7300. EUR/USD is down to 1.3608 from the open at 1.3637. GBP/USD is down to 1.6397 from the open at 1.6402. USD/JPY is up to 104.6465 from the open at 104.1900.

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