Lately, there were plenty of speculations if the recent drop of the US dollar means that the greenback has ended its upward thrust and is ready to retreat. As it turned out, the US currency is not yet ready to give up and rallied against its most-traded counterparts on Tuesday.
The dollar’s weakness did not last long, and the currency’s rally accelerated after positive economic data from the United States. The Job Openings and Labor Turnover Summary, while being a lagging indicator, remains an important piece of data that the Federal Reserve watches closely, and its latest reading was better than analysts have anticipated. Another positive surprise came from consumer credit that also beat expectations.
The market is repositioning itself as now traders are pricing in the likelihood of a late interest rate hike. Yet monetary tightening still looks inevitable, meaning that the dollar remains an attractive currency in the long term.
EUR/USD dropped from 1.0921 to 1.0824 as of 22:59 GMT today. GBP/USD declined from 1.4870 to 1.4820. USD/JPY rallied from 119.52 to 120.24.
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