US dollar is heading higher today, surging on the latest news from the Federal Reserve. Comments about the Fed’s quantitive easing program — and its potential end this year — are lending strength to the greenback.
The President of the San Francisco Federal Reserve, John Williams, made comments indicating that the current quantitative easing program might end this year. The idea that the efforts to keep the dollar weak might be coming to an end is lending strength to the US dollar.
Greenback is also gaining strength as Forex traders compare the economic situation in the United States with other regions. Even with the somewhat disappointing data from earlier this week, the greenback is still in a relatively strong position — especially when compared to the continued problems in the eurozone and the weakness with the UK economy.
The US dollar index is on the rise, breaking through the 84.0000 level, and expected to maintain its strength. The strength of greenback also continues to weigh on gold prices.
At 15:59 GMT the US dollar index is up to 84.2700 from the open at 83.7420. EUR/USD is down to 1.2818 from the open at 1.2882. GBP/USD is also lower, heading down to 1.5173 from the open at 1.5270. USD/JPY is up to 103.0105 from the open at 102.9000.
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