The US dollar is mostly lower against other currencies today, bringing the dollar index down. However, even with the recent disappointing performance, many expect dollar strength to return.
With the recent release of the minutes from the last Federal Reserve meeting, the greenback has headed lower. While many still expect a rate hike in December, the minutes were less hawkish than some had hoped.
Another reason the dollar might be heading lower could do with consolidation. Many Forex traders are taking profits and consolidating their positions ahead of December and the expected rate hike. Many still expect a hike next month, although there is speculation about how big it will be, and it might already be priced into the market to some degree.
As a result, the dollar index is lower today. The euro’s success against the greenback today, along with better performances by the yen and the loonie, are helping to keep the dollar index lower.
At 15:02 GMT the US dollar index is down to 99.153 from the open at 99.437. EUR/USD is higher, moving up to 1.0716 from the open at 1.0652. GBP/USD is also higher, gaining to 1.5279 from the open at 1.5236. USD/JPY is down to 122.9460 from the open at 123.5460. USD/CAD is down to 1.3278 from the open at 1.3319.
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