US Dollar Falls Back, Consolidating Against Major Currencies

US dollar is a little big lower today, falling back after rallying earlier. Right now, the greenback is consolidating, and Forex traders are taking profits. However, there is a good chance that the US dollar will remain relatively strong overall.

After its last policy meeting, Federal Reserve officials indicated that they may raise interest rates sooner than expected if the job market continues to improve. This news prompted a dollar rally, and the greenback headed higher against most of its major counterparts. Now, though, the rally has died off and Forex traders appear to be taking profits and consolidating their positions.

The US dollar is down against its major counterparts, and the dollar index is dropping as well. The losses aren’t very big, however, and if the US economy continues to show signs of recovery (especially as other economic regions struggle a bit), there is a good chance that the greenback will continue to relative strength in the long term.

At 11:32 GMT the US dollar index is lower, dropping to 87.1460 from the open at 87.2790. EUR/USD is higher today, gaining to 1.2517 from the open at 1.2492. GBP/USD is also moving higher, gaining to 1.5994 from the open at 1.5974. USD/JPY is lower, heading down to 113.3780 from the open at 113.7790.

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