US dollar is gaining ground against its major counterparts as the fallout from Mario Draghi’s comments continue to encourage traders to change direction. Dollar index is higher, as the greenback makes particular gains against the euro and the pound.
The US economy has been gather steam, and even though Janet Yellen refused to set a timetable for the Fed’s taper and provide clear guidance on interest rates, more immediate matters are taking precedence. After Yellen’s comments before Congress, ECB President Mario Draghi made is own remarks about what the ECB might do — and he indicated that rates in the eurozone might be cut as soon as June.
The news that the eurozone policy might be eased is lending strength to the US dollar. The news was even enough to give the greenback a boost against another European currency, the sterling. For now, the dollar index is getting quite a boost, and the greenback is likely to strength when compared to other currencies’ weakness.
At 13:48 GMT the US dollar index is up to 79.7260 from the open at 79.4350. EUR/USD is lower, dropping to 1.3787 from the open at 1.3840. GBP/USD is also lower, falling to 1.6860 from the open at 1.6933. USD/JPY is higher, moving up to 101.7350 from the open at 101.6700.
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