US dollar is mostly lower today against its major counterparts, and the dollar index is losing steam. Much of it has to do with consolidation and profit taking, however. The dollar is on a roll, and some analysts think the dollar rally still has plenty of life.
Greenback is seeing some losses today, falling against the euro as well as the yen. US dollar is higher against the pound, though. But the greenback is down against enough of its counterparts that the dollar index is lower today.
Part of the dollar’s lower performance is likely due to profit taking. The dollar rally has been so strong recently that it’s tempting to take profits where they are available, and then re-enter the trade at a good level during retracement.
Some analysts think that this is just a consolidation move for the greenback. With policy divergence a reality, due to the fact that the US economy is recovering when others aren’t, some think the dollar rally still has years of life.
At 10:26 GMT the US dollar index is down to 85.7640 from the open at 85.8260. EUR/USD is up to 1.2630 from the open at 1.2622. GBP/USD is down to 1.6141 from the open at 1.6186. USD/JPY is down to 108.6440 from the open at 108.8940.
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