US Dollar Pulls Back, Consolidating After Recent Rally

US dollar is pulling back, consolidating after its recent rally. With Fed minutes due to be released tomorrow, and interest in what they will show high, many Forex traders are repositioning themselves.

Greenback is lower almost across the board today as Forex traders take profits from the recent dollar rally, and as they consolidate their positions. The Federal Reserve will release the minutes of its latest meeting tomorrow, and many will be checking for signs that interest rates will rise faster and sooner than expected, which would give the US dollar a jolt.

For now, the lower dollar is providing some help to gold prices, which often move inversely to the greenback. Gold is higher, rallying to above the $1,200 mark for the first time in a long while. This may not last, though, if tomorrow’s Fed minutes give Forex traders reason to expect more dollar strength in the near term.

At 11:43 GMT the US dollar index is lower, falling to 87.5910 from the open at 87.8710. EUR/USD is higher, with the euro getting help from the latest ZEW data, moving to 1.2519 from the open at 1.2450. GBP/USD is up to 1.5667 from the open at 1.5640. USD/JPY is a little bit higher, gaining to 116.6940 from the open at 116.4570.

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