US dollar is looking to rebound today, and is staging a rather impressive recovery. While the greenback is still down against the euro, it is finding success against other major currencies.
Greenback is gaining some ground today in Forex trading, with the dollar index staging an ambitious recovery. The news that first time unemployment claims dropped more than expected last week is helping the situation right now. Additionally, positive earnings reports and other hopeful information about the US economy are providing some support for the US dollar.
Signs of a strengthening US economy could prompt the Fed to quit its easing programs earlier than expected, and that should take away some of the weakness in the US dollar.
Also proving helpful for the dollar is the fact that gold is running into resistance. Gold prices haven’t been faring well, even with a recent euro rally, and that means less downward pressure on the US dollar in general.
There’s a lot happening right now, and a number of directions various currencies could take.
At 17:30 GMT the dollar index is at 79.950, up from the previous close at 79.920. EUR/USD is higher at 1.3376, up from the open at 1.3318. GBP/USD is down to 1.5776 from the open at 1.5846. USD/JPY is up to 90.0845 from the open at 88.6055.
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