US Economic Optimism Helps Dollar

There’s a bit of economic optimism in the United States right now, and that is helping the US dollar against its high beta counterparts in Europe. Greenback is heading higher as the latest remarks from an ECB official hammer home the fact that the eurozone isn’t out of the woods yet.

Right now, the US dollar is getting help as analysts look at the somewhat encouraging jobs report from last Friday, and decide that the US economy is moving forward. While there were some setbacks, they were chalked up to the unusually harsh winter and many think the United States will recover moving forward.
This is in contrast to the situation in the eurozone, which doesn’t appear so rosy. ECB Vice President Vitor Constancio said that the markets didn’t catch the realities of the forward guidance issued after last week’s ECB meeting, and made it clear that easing options are still on the table.
Since this comes at a time when the Federal Reserve is expected to continue tapering its own easing efforts, the dollar is getting a bit of strength.
At 13:48 GMT EUR/USD is down to 1.3855 from the open at 1.3876.  GBP/USD is down to 1.6626 from the open at 1.6645. USD/JPY is down to 103.2325 from the open at 103.2665.

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