US dollar is heading lower against its major counterparts today, but strength is expected for the rest of the year as diverging monetary policies favor the greenback. For now, though, the US dollar index is lower.
Greenback is struggling on the Forex market today as its major counterparts come out ahead. Recent data has been a bit lackluster, and that is weighing on the US dollar. However, many analysts expect the dollar to strengthen as the year progresses, in spite of what things look like right now.
Indeed, the recent ECB decision to cut rates to below zero per cent is expected to keep the euro somewhat weak. Additionally, the news out of the United Kingdom hasn’t been overly encouraging. As a result, the US dollar is expected to strengthen in the coming months as economic data improves and as expectations for higher rates from the Federal Reserve are raised.
For now, though, the US dollar is showing a little weakness. But it probably won’t last.
At 14:15 GMT the US dollar index is down to 80.5120 form the open at 80.6100. EUR/USD is higher, up to 1.3569 from the open at 1.3538. GBP/USD is also higher, moving up to 1.6988 from the open at 1.6973. USD/JPY is lower, though, dropping to 101.8400 from the open at 102.0560.
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