US dollar is in the midst of a recovery after yesterday’s selloff. Right now, greenback appears to be correcting by logging gains following excessive selling. However, even with the current gains, a little caution is in order as we wait for the release of the minutes from the latest FOMC meeting, since many of the dollar’s potential gains might already be priced in.
Yesterday, there was a bit of a selloff in the US dollar. Today, though, the greenback is gaining against its major counterparts and the dollar index is on the rise.
Many Forex traders are looking forward to the release of the latest minutes from the Federal Open Market Committee meeting. Many expect to see more evidence that monetary tightening is on the way. Indeed, there are expectations for interest rates to start rising in 2015, and QE3 is supposed to come to an end this month.
All of this is dollar-positive. However, there are concerns that much of this has been priced in, and that the greenback might have appreciated too much, too fast.
A 11:33 GMT the dollar index is up to 85.7620 from the open at 85.5990. EUR/USD is down to 1.2653 from the open at 1.2669. GBP/USD is down to 1.6065 from the open at 1.6096. USD/JPY is up to 108.3430 from the open at 108.0290.
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