US dollar is retaining the upper hand in trading today, as uncertainty remains. Concerns about the eurozone remain, even after the announcement of the Spanish bailout. While US dollar has pared some of its gains, it is still retaining a lot of its strength, especially against the European currencies.
Some of the dollar’s earlier gains have been pared today, but there are still plenty of barriers to risk appetite, and that is likely to provide Forex traders with a reason to favor the greenback. Even after the Spanish bailout funds were announced, the US dollar is still gaining. There is still uncertainty about the eurozone, and other hurdles to clear.
Additionally, second quarter earnings season is underway in the United States, and the results thus far have been lackluster. A Federal Reserve meeting later this month also has many Forex traders wondering what could be next. Things aren’t bad enough that analysts think that more quantitative easing will be announced, so that works in the dollar’s favor, since it isn’t expected to be weakened much more by monetary policy — yet.
At 15:14 GMT the US dollar index is higher at 83.390, up from the open at 83.108. EUR/USD is down to 1.2248 from the open at 1.2313. GBP/USD is down to 1.5488 from the open at 1.5526. USD/JPY is down to 79.4760 from the open at 79.5550.
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