US dollar is finding support against some of its counterparts today as Forex traders enter “wait and see” mode with regard to what’s next for the global economy and US monetary policy. Greenback is higher against high beta currencies, and lower against the yen. The dollar index is higher today.
The US dollar index is higher today, reflecting the gains the greenback is making against its European counterparts, particularly the euro. While the gains aren’t huge, the US dollar is seeing some support as Forex traders try to figure out what’s next. Disappointing news in the eurozone, as well as in the United States has some wondering about the global economy. The Federal Reserve just started a two-day meeting, and many traders await the outcome, speculating about monetary policy and the future of the taper.
For the most part, it is easy to see why trading has been a bit choppy, with movements relatively small. The slight edge is going to the US dollar for now, especially against high beta currencies.
At 13:40 GMT the US dollar index is up to 79.4430 from the open at 79.3900. EUR/USD is down to 1.3903 from the open at 1.3922. GBP/USD is down to 1.6592 from the open at 1.6636. USD/JPY is down to 101.5100 from the open at 101.7620.
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