US dollar is seeing some gains today, thanks to expectations of economic improvement. Greenback is also getting some help following last week’s sell off as Forex traders look to get back into the dollar at a bargain.
Greenback is heading higher today as Forex traders expected better US retail sales data. There is speculation that an improved number could weigh on the decision to begin tapering the Federal Reserve’s asset purchase program sooner rather than later, and result in better dollar performance.
Additionally, the dollar is, once again, being compared to its overseas counterparts, particularly the euro. With more concerns about the worries about the individual economies in the eurozone — including some in the core as well as on the periphery — the euro is once again likely to struggle.
Moves by the US dollar aren’t likely to be huge, though. Ben Bernanke is expected to testify before Congress later this week, and his testimony will be parsed for information about the economy, as well as clues about what is likely to happen with the quantitative easing program.
At 13:47 GMT EUR/USD is down to 1.3049 from the open at 1.3078. GBP/USD is also lower, dropping to 1.5096 from the open at 1.5118. USD/JPY is higher, rising to 99.8505 from the open at 99.3660.
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