The US dollar index is heading lower today, dropping as better news arrives from Europe. As the situations in the United Kingdom and in the eurozone improve, and as US data misses expectations, the greenback is struggling.
The latest economic news out of the United States has been disappointing. Unemployment claims and retails sales data have been weighing on the greenback. On top of that, many Forex traders are contrasting this disappointing data with the better than expected data out of Europe. The eurozone surprised with GDP data and there is speculation that the Bank of England will raise rates before the Federal Reserve will.
With all of this happening, and with the inevitable comparisons, it is little surprise that the dollar index is losing ground. Greenback is down against its major European counterparts, and even struggling against the Japanese yen. Metals prices are also rising, with gold jolting higher. This puts downward pressure on the US dollar as well.
At 15:20 GMT the US dollar index is down to 80.1830 from the open at 80.3060. EUR/USD is higher, gaining to 1.3690 from the open at 1.3681, even if it is off a three-week high, reached earlier, of 1.3715. GBP/USD is up to 1.6737 from the open at 1.6655. USD/JPY is down to 101.8615 from the open at 102.2145.
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