US Dollar Resumes Its Rally

US dollar has resumed its rally, heading higher again after yesterday’s breather. Greenback is once again up against its major counterparts, gaining ground as rumors about a Fed rate increase swirl.

Forex traders are looking to better data as an indication that the Federal Reserve is getting ready to hike rates. The employment situation, while still not ideal, is improving, and that has long been one of the conditions set by the Fed for higher rates. Even though Fed Chair Janet Yellen is still not saying definitively when a rate hike will take place, evidence of a better economy has many thinking that it could happen as early as June.

When contrasted with what is going on in other countries, the US dollar looks to be ahead of everyone else. It is little surprise that the greenback has the upper hand when one looks at troubles in the eurozone and continued low inflation in the United Kingdom.

At 10:33 GMT the US dollar index is higher, moving up to 99.4640 from the open at 99.1890, but still not up to the high of 100 that it reached yesterday. EUR/USD is down to 1.0592 from the open at 1.0635. GBP/USD is down to 1.4829 from the open at 1.4883. USD/JPY is up to 121.4530 from the open at 121.2870.

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