Yesterday’s Federal Reserve announcement and the recent GDP data are putting a damper on the US dollar today. Greenback is heading lower as Forex traders mull the implications of a slowing economy.
US Dollar USD
Central Bank: Federal Reserve System
Public Debt to GDP Ratio, 2015: 73.6%
Trade Balance, 2015: -$749 bln.
Inflation, 2015: 0.2%
Global reserve currency
International trade currency
World's strongest economy
Safe haven currency
Factors of Weakness
Huge public debt
Negative trade balance
The US dollar is the currency of the United States of America. Introduced back in 1792 it has a long history of being strong medium of exchange. The currency is widely used in global international trade, as the reserve currency and is officially used in several countries besides the United States. The US dollar is also sometimes referred as greenback or simply the American dollar.
US Dollar News Archive
Greenback is slightly lower today, giving up some of its recent gains as Forex traders consolidate their positions. Many analysts and traders are looking forward to the Federal Reserve meeting later this week, trying to gauge what the next move will be.
US dollar saw some earlier gains, holding over from yesterday’s rally. However, by now they are mostly gone as the greenback pulls back. Forex traders are consolidating their positions and preparing for the next move.
The US dollar dropped today against most currencies as both domestic fundamentals and the general optimistic market sentiment weighed on the currency.
The US dollar attempted to rally against other most-traded currencies this week but found limited success. The greenback gained on the euro and the Japanese yen but fell against the Great Britain pound and commodity currencies.
The US dollar continued to rise against most of its rivals, though it slowed the advance and even halted it against some currencies as US inflation data was disappointing.
The economists’ sentiment was positive lately due to the rally of global stocks, the rise of crude oil and the relatively positive trade balance report from China. Yet in a surprising twist, this was helping the US dollar, not hindering it.
The US dollar fell against some other currencies today as traders remained concerned that the Federal Reserve will not be able to raise interest rates as fast as it has initially planned. The greenback was especially vulnerable against commodity-geared currencies and the Great Britain pound, faring better against safe currencies and the euro.
US dollar is remaining steady against the euro and the pound as risk aversion remains an issue. However, the greenback continues to fall against the yen.
Dollar index is heading higher today as traders shun riskier assets. Stocks are dropping, as are oil prices. Traders are turning away from riskier assets in favor of safe havens, and that is helping the greenback to some degree.