US dollar index is higher today. As the week begins, greenback is showing some strength, although it is lower against some individual currencies, like the euro.
Dollar index is higher today, with the greenback mostly higher against its major counterparts, as Forex traders contemplate the possible end to quantitative easing.
Nonfarm payrolls data showed a modest gain in jobs for May, and other signs that the US economic recovery continues (albeit somewhat slowly) are encouraging the idea that the Federal Reserve will be able to scale back its quantitative easing efforts. The stimulus has been weakening the US dollar, so it makes sense that ending it would bring a little strength to the greenback. US dollar is also seeing some help from the fact that S&P has just revised the US credit outlook up to stable from negative.
Also helping the US dollar a little bit is the risk aversion in the markets. Concern about a slowdown in growth for China is weighing on sentiment a little bit. With the world economy struggling, riskier assets are lower in favor of more stable assets.
At 13:18 GMT the US dollar index is up to 81.9720 from the open at 81.8520. EUR/USD is up to 1.3195 from the open at 1.3192. GBP/USD is down to 1.5503 from the open at 1.5517. USD/JPY is up to 99.0850 from the open at 97.8535.
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