US Dollar Moderates a Bit

Greenback is consolidating ahead of today’s US nonfarm payrolls data for October. Dollar index is a little bit lower right now, and the euro has made a few gains following its steep losses yesterday.

US dollar is evening out a bit after a spectacular rally that came yesterday on the heels of Mario Draghi’s comments about what the ECB might have to do in order to stimulate the eurozone economy. Draghi was extremely dovish, and talked of the possibility of unconventional means.

Greenback got a big boost from that yesterday, especially since economic news in the United States is expected to point to a pickup in hiring when it releases nonfarm payrolls data, and speculation that the Federal Reserve will have to start raising rates soon. It also helped that gold dropped yesterday, even though it is inching up today.

For now, the dollar seems to be consolidating as profit takers get ready for the next raft of economic data, and prepare the positions for what’s next.

At 11:22 GMT the US dollar index is down to 87.9630 from the open at 88.0530. EUR/USD is higher, moving up to 1.2398 from the open at 1.2376 and trading off an earlier session low of 1.2364. GBP/USD is down to 1.5822 from the open at 1.5834. USD/JPY is up to 115.1880 from the open at 115.1700.

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