Between the prospect of continued easing in the United States, and the bond yield shock this morning, the US dollar is struggling today. The dollar index is lower as the greenback loses ground to its major counterparts.
Earlier today, the world got a shock as US bond yields rose. The news caused ripples of concern, even on the heels of S&P‘s decision to upgrade the credit outlook for the United States. On top of that, there are concerns that the economic data released recently hasn’t been good enough to prompt the Federal Reserve to curb its easing program. With quantitative easing still in place, the greenback is likely to see some weakness.
Indeed, today shows that the US dollar is having trouble building on last week’s gains. Instead, the dollar is lower — even though risk aversion is emerging in a number of markets. Dollar is down even though gold and oil prices are dropping. And, with emerging markets tanking, safe havens are showing an unwarranted amount of vulnerability.
At 15:11 GMT the US dollar index is lower, dropping to 81.3260 from the open at 81.7220. EUR/USD is moving higher, to 1.3279 from the open at 1.3257. GBP/USD is also higher at 1.5602, up from the open at 1.5573. USD/JPY is down to 96.7970 from the open at 98.7700.
If you have any questions, comments or opinions regarding the US Dollar,
feel free to post them using the commentary form below.
Be First to Comment