US dollar is mixed today, thanks in large part to confused signals about what’s next for the currency. The latest jobs data was soft, and that has some rethinking the idea that the Federal Reserve will boost its tapering efforts. The Fed might have started the taper, but it’s not likely to step back stimulus further if data remains soft.
Even though the US dollar is down against the Japanese yen on the latest jobs data, it is still gaining against its European counterparts. Greenback received a bit of a shock when December’s non-farms payrolls data came in at a rise of 74,000, instead of the expected 196,000. However, that shock isn’t enough to keep the dollar down against the euro and the pound.
European currencies are experiencing their own difficulties. The pound is dropping on its own economic problems, and the eurozone continues to face a number of economic hurdles. As a result, the dollar is still in the best position of those currencies, and gaining. Against the yen, though, the dollar is dropping as risk aversion sets in.
At 15:37 GMT EUR/USD is down to 1.3647 from the open at 1.3678. GBP/USD is down to 1.6371 from the open at 1.6487. USD/JPY is down to 103.3065 from the open at 103.9900.
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