It’s all about the US dollar these days. The greenback continues to strengthen against major counterparts, and see gains as commodities drop and as expectations for the US economy continue to improve.
Right now, the US dollar is up pretty much across the board against its major counterparts. There is very little to hinder dollar strength as the US economy is seen as picking up, and the Federal Reserve is expected to boost interest rates at some point in 2015.
Falling commodities are helping the US dollar. While oil is a little higher today, the reality is that it is still priced below $50 a barrel, and the situation isn’t expected to change anytime soon. Gold is falling again, although the precious metal has managed to remain above $1,200 an ounce.
The dollar is favored for now, and that means that everywhere else is “on sale” for Americans in 2015. Dollar strength is expected to remain for the short to medium term.
At 11:30 GMT the US dollar index is higher, moving up to 91.8830 from the open at 91.7500, and up from the previous close at 91.4990. EUR/USD is down to 1.1844 from the open at 1.1899, remaining near lows not seen in years. GBP/USD is also lower, falling to 1.5132 from the open at 1.5153. USD/JPY is up to 119.0880 from the open at 118.5080.
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