Economic Data Helps US Dollar Recover from Dovish Fed

Positive economic data out of the United States helping the US dollar move higher today, recovering from the dovish stance adopted by the Federal Reserve at the end of its two-day meeting earlier this week. Greenback is higher against its major counterparts and the dollar index is gaining as well.

Good economic news continues to point to recovery for the US economy, and that is helping the US dollar today. Jobs data released Thursday indicates that initial claims fell in by 12,000 last week. Not only that, but factory activity in the mid-Atlantic is expanding and US consumer prices are on the rise.
Even though inflation numbers missed their mark and are well below the Fed target of 2.0 per cent, it still indicates growth, especially when coupled with other data. The news is once again presenting an argument for higher rates, in spite of the recent Fed statement that was too dovish for some tastes.
At 12:07 GMT the US dollar is heading higher against most of its major counterparts. The US dollar index is up to 94.38 from the open at 94.03. EUR/USD is lower, dropping to 1.1307 from the open at 1.1360. GBP/USD is also lower, falling to 1.5840 from the open at 1.5880. USD/JPY is higher, gaining to 123.1340 from the open at 122.9690.

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