US Dollar Resumes Its Recent Rally

US dollar is heading higher again today, gaining against its major counterparts as European currencies struggle. Positive economic data in the United States is helping, as are concerns about what’s next for some of the European currencies.

There is a lot going on to support the US dollar today, and the greenback is taking advantage. Coming off a long holiday weekend, for Memorial Day, the greenback is heading higher. Trading the last couple of days has been thin, but now US stock markets are poised to open higher, and there is optimism about the future of the US economy.
This optimism stands in stark contrast to the continued difficulties that some expect European economies to face. The US dollar has an advantage as far as that is concerned. There are hopes that the Federal Reserve will pull back on the taper and raise rates soon, and the dollar is also getting support from the fact that commodities, particularly gold prices, are lower today.
At 13:08 GMT the US dollar index is up to 80.3260 from the open at 80.2750. EUR/USD is lower, dropping to 1.3640 from the open at 1.3646. GBP/USD is also lower, falling to 1.6816 from the open at 1.6842. USD/JPY is up to 139.0445 from the open at 139.0990.

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