The US dollar index is lower for now, but more support for the greenback might be in the future. For now, the dollar is lower against the euro, as well as the yen, but it could find support if the economic situations in the eurozone and the United Kingdom don’t improve anytime soon.
Right now, the US dollar is lower, following the news that the ECB and BOE aren’t planning on adjusting interest rate policy — at least not yet. The news has given European currencies a bit of a boost, even though the pound continues to struggle a bit.
Greenback is also on the receiving end of downward pressure as gold prices move a little higher, and as risk appetite makes an appearance. Global stock markets are higher, and US stock futures are pointing to a higher open. This risk appetite means less demand for the US dollar as confidence enters the market.
This doesn’t mean that all support is gone for the greenback, however. There is still some technical support for the US dollar, and fundamental support might come as Forex traders listen to direction for global policymakers about what to expect for the eurozone.
At 14:20 GMT the dollar index is down to 80.8160 from the open at 81.0470. EUR/USD is up to 1.3616 from the open at 1.3538 and GBP/USD is up to 1.6323 from the open at 1.6312.
If you have any questions, comments or opinions regarding the US Dollar,
feel free to post them using the commentary form below.