US dollar continues to struggle today, thanks to yesterday’s release of disappointing trade data. Economic reports are dampening hopes for an interest rate hike from the Federal Reserve, and that is weighing on the greenback in Forex trading.
Even though the US dollar has been paring losses against the yen, it is still lower against that currency, and down against the pound and the euro as well. The dollar index is losing ground as the greenback drops against its counterparts.
The drop for the dollar was prompted by the news that the US trade deficit widened to $51.37 billion in March. Other economic data has been disappointing as well. There had been hopes that the Federal Reserve would decide to raise interest rates sooner rather than later, but those hopes are fading fast right now as economic data continues to point to a slowing recovery.
Now, there is speculation that the next global financial crisis might be the result of current dollar strength, even with the current momentary weakness.
At 10:45 GMT the US dollar index is down to 94.7630 from the open at 95.1460. EUR/USD is up to 1.226 from the open at 1.1186. GBP/USD is up to 1.5214 from the open at 1.5182. USD/JPY is down to 119.7890 from the open at 119.8580.
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