US Dollar Retreats From Recent Highs

US dollar is retreating from recent highs today, especially against the euro. The dollar index is lower as a result. However, expectations for long-term dollar strength aren’t over yet.

Greenback appears to be in consolidation mode to some degree as it retreats from recent highs. Dollar is lower against the euro, even though it is higher than the pound and the yen today. This drop against the euro is one of the reasons that the dollar index is lower. Euro is heavily weighted in the dollar index basket of currencies.
However, even with US dollar showing less strength, there are still expectations for the greenback long term. Many traders are waiting for the Federal Reserve to begin hiking interest rates, something that could happen later this year.
Right now, a pullback in the dollar is helping to stabilize commodity performances. Gold prices are inching higher, as are oil prices.
At 10:54 GMT the US dollar index is moving lower, falling to 97.1650 from the open at 97.2900. EUR/USD is heading higher, although some of the gains have been pared, to 1.0938 from the open at 1.0904. GBP/USD is lower, heading down to 1.5315 from the open at 1.5355. USD/JPY is higher, moving up to 124.1430 from the open at 123.6650.

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