US dollar index is higher today as the greenback continues to gain on expectations for improvement in the economy. With Janet Yellen’s upbeat assessment earlier this week, even slightly mixed data can’t dampen the spirits of those that think the US dollar will soon gain strength as the Fed reduces is easing efforts.
Greenback is higher against most of it major counterparts today, gaining on expectations that the Federal Reserve will quit easing and even raise rates ahead of schedule. In testimony before members of Congress earlier this week, Federal Reserve Chair Janet Yellen was upbeat, and suggested that interest rates could head higher sooner than expected.
Even with economic data that has been mixed, there is still a lot of enthusiasm for the greenback, especially when the dollar’s potential performance is contrasted with that of the euro. Between policy divergence and better expectations dollar strength appears to be coming. Dollar is also getting help from the fact that commodities like gold and oil are losing ground today.
At 13:19 GMT the US dollar index is higher, gaining to 80.5650 from the open at 80.5780. EUR/USD is lower, dropping to 1.3495 from the open at 1.3526. GBP/USD is also lower, falling to 1.7046 from the open at 1.7101. USD/JPY is higher, moving up to 101.4150 from the open at 101.1780.
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