Dollar Index Slips, but Could Strengthen Again

The US dollar index has slipped a bit today, losing ground after the recent US dollar rally. Right now, there is a little bit of consolidation happening, and the dollar index is lower. However, when looking at the latest data, there is a good chance that the greenback could strengthen again in the near future.

The latest jobs data to come out of the United States indicates that the economy has added 209,000 jobs. This amounts to a trend that is picking up pace. There is no speculation of when the jobless rate will be back down to 5 per cent. However, the news hasn’t been good for US stocks. One of the reasons is that there are expectations that continued good news will force the Federal Reserve to tighten its monetary policy. While this might help the US dollar, it’s not considered a great thing for stocks.

Interestingly, the US dollar index is lower today, even with the news, and it is also lower against the euro. There is some speculation that greenback is lower due to consolidation.

At 13:42 GMT US dollar index is down to 81.3090 from the open at 81.4590. EUR/USD is up to 1.3419 from the open at 1.3391. GBP/USD is down to 1.6836 from the open at 1.6885. USD/JPY is down to 102.6655 from the open at 102.7955.

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