Greenback Looks to Recover from Easing Talk

US dollar is looking for recovery today, gaining against European currencies, after talk of easing earlier sent the greenback a little bit lower.

With weak US economic data coming in, some Forex traders and others are speculating that a rate hike from the Federal Reserve might be further off than originally thought. In fact, some circles there is talk of more easing from the Fed. As a result, the US dollar saw some weakness against its major counterparts earlier.
Right now much of the dollar’s earlier losses have been erased as attention turns back to European currencies and the issues being faced across the Atlantic. Indeed, comments from ECB policymaker Ewald Nowotny indicating that more stimulus could be coming for the eurozone are helping the greenback against the euro.
However, a Fed rate hike is slowly being priced out of the markets right now. There is talk of no hike until 2016. Much of this conundrum is being laid to the dollar’s own account, since the recent strength of the greenback has contributed to slower economic growth.
At 13:45 GMT EUR/USD is down to 1.1379 from the open at 1.1474. GBP/USD is down to 1.5430 from the open at 1.5477. USD/JPY is lower, dropping to 118.6120 from the open at 118.8370.

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