US Dollar Gains on Revived Hopes of a 2016 Rate Hike

US dollar is heading higher today, gaining as hopes are revived for another rate hike by the end of the year. Inflation numbers weren’t as low as expected, and many Forex traders are looking for reasons to be positive about the greenback.

US dollar is higher against its major counterparts today, gaining ground as speculation that another rate hike could come before the end of the year. Even though the latest report on inflation showed moderation in July, things aren’t as bad as expected. As a result, there is once again speculation that the Federal Reserve could raise interest rates again by the end of the year.
For the most part, there aren’t expectations for a rate hike in September, but there is some speculation that the Fed will make a move before the end of 2016. That speculation is fueling gains for the greenback against its counterparts, as well as helping the dollar index move higher again.
At 13:51 GMT the US dollar index is higher, gaining to 94.896 from the open at 94.828. EUR/USD is moving lower, dropping to 1.1266 from the open at 1.1279. GBP/USD is also dropping, heading down to 1.3005 from the open at 1.3046. USD/JPY is higher, moving up to 100.53 from the open at 100.30.

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