US Dollar Loses Ground after Bernanke Remarks

Greenback is heading lower today, following some gains in the wake of positive economic data. Even with the positive data, though, the US dollar is losing ground as concern about the latest remarks from Ben Bernanke weigh on its performance.

Recent economic data shows that economic recovery appears to be moving at a reasonable rate right now. With initial jobless claims down, and with the latest manufacturing report from the Federal Reserve Bank of Philadelphia showing an increase in activity, there is good news for the US economy.

Federal Reserve Chair Ben Bernanke pointed out that quantitative easing might be wrapped up next year if the economy continues to improve. Between that news and the economic data, the greenback got a boost. However, the gains were soon tempered by the rest of Bernanke’s testimony before Congress, which emphasized that there is no set timetable for tapering. The uncertainty is weighing on the US dollar right now, sending it down against its major counterparts.

At 14:13 GMT the US dollar index is down to 82.6390 from the open at 82.7980. EUR/USD is up to 1.3123 from the open at 1.3109. GBP/USD is up to 1.5262 from the open at 1.5226. USD/JPY is down to 100.2050 from the open at 100.4250.

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