US dollar is lower right now, following a rally earlier. Greenback had seen some success after the US inflation report, but now is pulling back.
Dollar saw a rally earlier, following an inflation report that had many forex traders speculating that a Federal Reserve rate hike might come sooner after all. However, the rally was short-lived and there are concerns again about whether or not the Fed really will raise rates in the near future.
Many had been hoping for a rate hike as early as June, but now it looks like September is more likely and that is weighing on the greenback. More clues are expected later today when Charles Evans, the President of the Chicago Federal Reserve, is to speak. His remarks could clear things up a little more, and provide new direction for the US dollar.
For now, though, disappointed hopes for an earlier Fed rate hike are weighing on the dollar. With commodities struggling again today, the losses aren’t what they could be.
At 10:56 GMT the US dollar index is down to 97.0130 from the open at 97.2770. EUR/USD is higher, gaining to 1.0965 from the open at 1.0924. GBP/USD is higher as well, gaining to 1.4875 from the open at 1.4850. USD/JPY is lower, dropping to 119.5680 from the open at 119.7550.
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