Greenback Consolidates Some of Its Gains

Greenback is consolidating some of its gains, looking to prepare for what many expect to be a strong bull run. While the dollar might be a little lower against some of its major counterparts, like the euro, the greenback is expected to break out at some point in the future.

Many expect the US dollar to remain strong overall for quite some time as the Federal Reserve begins to raise rates. A December rate hike is practically a given at this point, and many Forex traders are positioning for this development, with the dollar a little lower in some cases as it consolidates.
However, December isn’t the only expectation for some. Many are already looking toward 2016, and speculating on when a second rate hike might be. There is some discussion about whether or not a stronger dollar will cap interest rates, though. If rate hikes (and dollar strength) come too quickly, they could stifle the economic growth of the United States. The Fed will want to avoid that, and so a measured approach to future rate hikes is expected.
At 15:12 GMT the US dollar index is down to 99.159 from the open at 99.239. EUR/USD is up to 1.0731 from the open at 1.0726. GBP/USD is up to 1.5090 from the open at 1.5055. USD/JPY is up to 123.3700 from the open at 123.2610.

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