Economic data in the United States is prompting a retreat for the US dollar right now. As data continues to disappoint, the greenback heads lower as quantitative easing measures are expected to remain in place.
The Federal Reserve is meeting later this week to discuss monetary policy, and there are expectations that the FOMC will decide to continue its asset purchase program. The continuation of quantitative easing measures is weighing on the greenback today.
US dollar is down against most of its major counterparts as concerns about the flagging economic recovery lead to speculation that the Fed will want to keep the greenback weak. Even the expected ECB rate cut isn’t sending EUR/USD down, since the eurozone hasn’t turned to quantitative easing yet.
Higher commodity prices are also weighing on the greenback. US dollar often moves inversely to oil and gold, and with both those commodities gaining today, there is some downward pressure on the greenback.
At 16:01 GMT the US dollar index is heading lower, falling to 82.192 from the open at 82.305, and down from the previous close at 82.502. EUR/USD is up to 1.3089 from the open at 1.3049, paring some of its earlier gains. GBP/USD is up to 1.5494 from the open at 1.5488. USD/JPY is up to 98.0955 from the open at 97.9475. USD/CAD is down to 1.0138 from the open at 1.0167.
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