US Dollar Pauses for Breather

US dollar is lower today, losing ground against many of its major counterparts. The greenback is pausing for a breather right now, heading lower as Forex traders take profits and consider what could be next.

Greenback has seen a lot of strength recently, thanks in large part to policy divergence. The Federal Reserve is talking about possibly raising interest rates soon, and other major currencies — especially the euro and the yen — aren’t likely to see such changes anytime in the coming months.

However, the dollar’s rally has been slowed a bit recently. Some Forex traders are pulling back, consolidating, and taking profits. This is leading to a lower US dollar today, as the currency drops against its major counterparts, and as the dollar index falls.

The latest bits of economic news out of Europe and China are also providing more speculation that the US dollar could strengthen in the near to medium future, even though it’s lower now.

At 11:10 GMT the US dollar index is lower today, down to 84.4540 from the open at 84.6740. EUR/USD is higher today, moving up to 1.2887 from the open at 1.2850. GBP/USD is up to 1.6384 from the open at 1.6361. USD/JPY is down to 108.5035 from the open at 108.8400.

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