Greenback Surges on Oil Prices, Fed Expectations

US dollar is heading higher today as falling oil prices take their toll on other currencies, and as expectations for the next Federal Reserve meeting ramp up.

There is a lot going on right now, and much of it is supporting the US dollar in currency trading on the FX market. Oil prices continue to drop, and that is helping the greenback, which normally moves inversely to crude oil. Lower oil prices are also undermining other currencies, such as the Canadian dollar and the euro.

Also helping the greenback today in currency trading is the expectation that the Federal Reserve will announce a rate increase at its next meeting. While the pace of following rate increases has yet to be seen, right now there is a great deal of focus on the upcoming meeting, and what Janet Yellen will say in terms of forward guidance.

For now, there isn’t much to stop the US dollar, and its position as the front-runner of currencies is fairly well assured.

At 15:50 GMT the US dollar index is up to 98.732 from the open at 98.315. EUR/USD is down to 1.0821 from the open at 1.0868. GBP/USD is down to 1.5069 from the open at 1.5107. USD/JPY is up to 123.3750 from the open at 123.1850.

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