Growing Trade Deficit Doesn’t Slow Dollar Gains

A growing trade deficit for the United States hasn’t slowed dollar gains today, largely due to the fact that economic data is overshadowed by the Greek drama still being played out in the eurozone. With all eyes on the 19-nation currency region, and uncertainty over what’s next running high, the US dollar is mostly higher.

The latest trade deficit numbers indicate that the May 2015 trade deficit for the United States climbed to $41.9 billion from $40.7 billion in April. The change hasn’t been weighing on the US dollar, though. Instead, more focus is on the situation in the eurozone. The fate of Greece still hasn’t been decided, and that is taking a lot of attention.
Additionally, many Forex traders are waiting eagerly for tomorrow’s release of the minutes from the latest Federal Reserve meeting. There is a great deal of interest in evidence that policymakers really are ready to start raising interest rates soon, perhaps as soon as September.
At 1:00 pm GMT the US dollar index is up to 97.18 from the open at 96.31. EUR/USD is down to 1.0921 from the open at 1.1056. GBP/USD is down to 1.5429 from the open at 1.5606. USD/JPY is down to 122.4860 from the open at 122.5730. USD/CAD is up to 1.2740 from the open at 1.2651, thanks in part to the first US trade surplus with Canada since 1990.

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