US dollar is mostly higher today, thanks in large part to policy expectations. Many expect the Federal Reserve to start tightening soon, and that is leading to gains for the greenback.
The latest economic data out of the United States continues to indicate that an economic recovery is underway. This recent recovery has been somewhat slow, but it is nonetheless moving in a positive direction, and that is helping the greenback.
US dollar is higher today, thanks in large part to expectations of policy divergence. Concerns about the Scottish independence vote are weighing on the pound, the eurozone continues to flounder and the ECB is expected to ease further, and the Japanese yen continues to remain weak from the BOJ money-printing program.
When considered in that light, the expectations that the Federal Reserve will have to start tightening its policy soon seem reasonable. And this policy divergence is helping the dollar against its counterparts and spurring the dollar index to new heights.
At 10:44 GMT the US dollar index is up to 82.8730 from the open at 82.8450. EUR/USD is lower, dropping to 1.3126 from the open at 1.3150. GBP/USD is also down, moving to 1.6454 from the open at 1.6461. USD/JPY is higher, moving up to 104.9290 from the open at 104.7880.
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