Even though risk appetite appears to be on the rise today, the US dollar is gaining ground. Greenback is heading higher as investors and others look to the future of possible Fed tapering, and compare the US economic recovery to the situations in other countries.
Yesterday, the Federal Reserve concluded a two-day meeting without offering any clues about when it will begin tapering. Initially, this led to a rather dramatic drop for the greenback. However, the US dollar has bounced back from recent lows and is now higher against its major counterparts.
Even without the Fed providing solid clues as to tapering, there is speculation that the tapering could come sometime soon. Many Forex traders and investors are looking at the latest GDP data, jobs reports, and other information to try to determine whether or not the economy is growing at a pace that allows for the Fed to feel comfortable tapering their asset purchase efforts.
Many are also comparing economic growth in the United States with growth in other regions. The US economy is still showing better recover than the eurozone or the United Kingdom, so that is helping the dollar as well.
At 14:20 GMT EUR/USD is down to 1.3227 from the open at 1.3302. GBP/USD is down to 1.5147 from the open at 1.5208. USD/JPY is up to 99.2730 from the open at 97.8970.
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