US dollar uptrends seem to be reversing right now as concerns about the economy and expectations of policy divergence are reduced.
Greenback is mostly lower today against its major counterparts, thanks in large part to the fact that recent economic has been disappointing and many expect the Federal Reserve to hold off on interest rate hikes until early next year.
With the most recent jobs data a disappointment, and with other signs of slowing economic growth (including worries about global growth due to a China slowdown), many expect Janet Yellen and her fellow policymakers to push back the timetable for raising rates.
Because so much of the dollar’s recent strength has relied on expectations of policy divergence, the idea that maybe the greenback won’t see rate hikes anytime soon is contributing to weakness in the dollar relative to its major counterparts, except the yen, which is lower against the greenback.
At 13:47 GMT the US dollar index is down to 95.878 from the open at 96.026. EUR/USD is higher, moving up to 1.1217 from the open at 1.1188. GBP/USD is also higher, gaining ground to move up to 1.5194 from the open at 1.5147. USD/JPY is actually higher, rising to 120.4900 from the open at 120.4610. USD/CAD is dropping to 1.3077 from the open at 1.3087.
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