US dollar is strengthening today following the earnings kick off for the second quarter. With good news from Alcoa building on last week’s strong jobs data, dollar is finding support from expectations that the Fed taper will begin soon, and the economy will strengthen.
The news is good for the US economy, resulting in gains for the US dollar right now. Alcoa, the largest aluminum producer in the United States, started of second quarter earnings season with better than expected profits. There are hopes that other US companies will show equal success, and US stock futures are pointing to a higher open.
Good news about earnings follow on the heels of last week’s strong showing for jobs data. With unemployment claims falling and jobs being added to the economy, there are expectations that the Federal Reserve will beging tapering its asset purchase program — a situation that should lend strength to the greenback.
US dollar is gaining against its major counterparts mainly on the expectation that the US economy will recover better than other economies.
At 12:49 GMT EUR/USD is down to 1.2861 from the open at 1.2870. GBP/USD is down to 1.4877 from the open at 1.4949. USD/JPY is up to 101.1510 from the open at 100.9675. US dollar index is up to 84.3370 from the open at 84.2400.
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