US dollar is heading higher today, gaining ground as the latest economic data adds to the speculation that the Federal Reserve could begin tapering its asset purchase program sooner rather than later. With private payrolls increasing and with the news that GDP rose in the second quarter of 2013, it looks like the US economic recovery is rolling forward.
Greenback is higher against its major counterparts today as Forex traders and others wait for the Federal Reserve policy announcement expected later today. Ben Bernanke has said that jobs data and economic progress will play a role in helping the FOMC decide when to start tapering off its asset purchase program, and many are looking at the latest data and speculating that tapering will begin sooner rather than later.
According to ADP, the private sector added 200,000 jobs in July, which has many looking forward to this coming Friday’s nonfarm payrolls report. On top of that, the latest report on GDP indicates that the economy grew 1.7 per cent in the second quarter of 2013. This increase is the result of increased consumer spending, as well as business investment.
At 13:50 GMT EUR/USD is down to 1.3224 from the open at 1.3262. GBP/USD is down to 1.5132 from the open at 1.5237. USD/JPY is up to 98.3300 from the open at 98.0360.
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