US Dollar Drops as Fed Rate Hike Slips Further Into the Future

US dollar is heading lower against most of its major counterparts today as the latest data reduces that chances that the Federal Reserve will raise rates in the near future. Global stocks are higher and commodities are gaining, and these are factors weighing on the greenback.

The latest economic data relating to productivity has disappointed economists and analysts. There are indications that this could mean more weakness ahead for the US economy — or at least indicate that the recovery isn’t going as well as expected.
With concerns about the economic recovery once again at the forefront of many minds, it is little surprise that many expect that the Federal Reserve will hold off on raising interest rates anytime soon. The prospect of a rate hike is receding a little bit into the future, and that means dollar weakness.
Commodities are on the rise, however, as are stocks. With central banks likely to remain in accommodation mode for some time, asset prices are on the rise and that is weighing against the US dollar in forex trading.
At 14:59 GMT EUR/USD is heading up to 1.1172 from the open at 1.1116. GBP/USD is also higher, gaining to 1.3033 from the open at 1.3002. USD/JPY is down to 101.85 from the open at 101.88.

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