US dollar is heading higher today, thanks in large part to the fact that a number of US data economic prints surprised to the upside. With the US economy continuing to show signs of recovery, many hope to see the Federal Reserve take more steps to tighten policy, which could mean more strength.
Even though housing starts missed expectations this month, there are plenty of other economic data releases that suprised to the upside. Insdustrial Production and Building Permits are higher, as are Producer Prices. These indications that the economy is picking up the pace are helping the greenback today against its major counterparts.
US dollar is also getting some help from recent profit taking, as Forex traders lock in recent profits from other currencies. The US dollar index briefly touched the 97.000 level, but has fallen back a little. Stock gains, as well as gains for oil and gold, are limiting some of the dollar’s gains today.
At 15:04 GMT the US dollar index is up to 96.935 from the previous close at 96.868. EUR/USD is lower, falling to 1.1121 from the open at 1.1142. GBP/USD is also lower, dropping to 1.4253 from the open at 1.4293. USD/JPY is higher, gaining ground to 114.2650 from the open at 113.9610.
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