US dollar is heading higher against the euro today, surging ahead as expectations about the eurozone and expectations about the US economy solidify ahead of an ECB meeting and US payrolls data on Friday. Greenback is higher, putting pressure on commodities as well.
The US dollar is stronger against the euro right now as concerns about the eurozone continue, and as many look for the Federal Reserve to begin tapering its asset purchase program sometime near the start of 2014.
Right now, the US dollar is higher, thanks in large part to good economic data. Better than expected business activity was recently reported in the United States, and that is supporting the idea that the economic recovery continues apace. With a stronger economy, there are expectations that the Federal Reserve will soon begin reducing its asset purchases.
In the meantime, the latest inflation report has many speculating that the ECB will have to cut its benchmark rate on Thursday. If the ECB does cut rates, and if Friday’s payrolls report in the United States is favorable, the dollar could see even bigger gains.
At 16:20 GMT EUR/USD is down to 1.3475 from the open at 1.3515. USD/JPY is down to 98.56 from the open at 98.60. GBP/USD is up to 1.6048 from the open at 1.5969.
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