US dollar index is dropping today, but the greenback performance overall is mixed as Forex traders look for direction, and try to figure out what, exactly, the G-7 countries feel about the recent sharp fall by the Japanese yen.
While the dollar index is lower today, the greenback is mixed against its major counterparts. As has been usual lately, the greenback is down against the euro. However, following yesterday’s G-7 statement about avoiding currency war, the US dollar has regained some lost ground against the yen. While G-7 countries jointly agreed to stay away from currency war, they didn’t mention what they thought about the yen’s recent weakness.
Dollar is also rising against the UK pound today, thanks in large part to the dovish comments from the Bank of England. Sterling is struggling in general, and it’s no surprise that the dollar has the upper hand against the British currency today.
For now, the greenback is likely to remain mixed. There is a lot of uncertainty out there, mixed with pockets of optimism. Forex traders are looking for direction.
At 14:22 GMT US dollar index is down to 79.981 from the open at 80.028. EUR/USD is up to 1.3475 from the open at 1.3455. GBP/USD is down to 1.5576 from the open at 1.5662. USD/JPY is up to 93.5975 from the open at 93.4735.
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