Greenback Pulls Back After Earlier Gains

US dollar saw some earlier gains, holding over from yesterday’s rally. However, by now they are mostly gone as the greenback pulls back. Forex traders are consolidating their positions and preparing for the next move.

Yesterday, the US dollar saw some gains as upbeat housing data helped bolster the story of a continuing recovery for the economy. Existing home sales rose 5.1 per cent in March, beating the forecast of a rise of 3.5 per cent. Greenback was also getting a
Greenback was also getting a little support on market uncertainty with struggling oil prices yesterday. Today, commodities are higher, and that is weighing on the dollar. Also, the greenback appears to be in consolidation as Forex traders position themselves for what’s next.
There are noises about more stimulus from the ECB, and that has some looking for more policy divergence between the US dollar and the euro. In this scenario, the greenback would move higher. However, much of that depends on the timing of the next Federal Reserve rate hike.
At 13:27 GMT the US dollar index is down to 94.028 from the open at 94.525. EUR/USD is up to 1.1375 from the open at 1.1296. GBP/USD is up to 1.4412 from the open at 1.4331. USD/JPY is down to 109.6350 from the open at 109.8450.

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