Even though the greenback is trading mixed against its major counterparts, the dollar index is still higher today, thanks in part to the fact that the euro (which is weighted most heavily in the basket) is lower against the US dollar.
As Forex traders and analysts consider what’s next for central banks around the world, trading has become a little interesting. Many are waiting to see what the Federal Reserve will do, as well as figure out what’s next for other countries. Decisions by the ECB, BOE and BOJ are all considered in relation to what the Federal Reserve decides, and that has bearing on dollar performance.
For today, the greenback is trading mixed against its major counterparts, although the dollar index is higher. Dollar has regained the upper hand against the euro, and because the euro is the currency with the heaviest weight in the dollar index basket of currencies, that makes a big difference.
However, a lot of the future performance of the dollar will depend on economic data and how the Fed responds.
At 14:27 GMT the US dollar index is up to 95.619 from the open at 95.490. EUR/USD is down to 1.1225 from the open at 1.1272. GBP/USD is up to 1.5299 from the open at 1.5226. USD/JPY is down to 119.9860.
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