US Dollar Index Gains on European Concerns
US dollar index is gaining today, inching a bit higher. Previously, the US dollar index was struggling as the euro came off three-week lows to post some gains. However, those gains have been overwhelmed, and the US dollar is higher. Too many concerns about what’s next for the eurozone are weighing on European currencies, even though equities and commodities are higher today.
Good news out the United States is also helping, as Forex traders contrast the situation with what is happening in the eurozone. ADP reported that the private sector added 216,000 jobs in February. This news is expected to pre-sage a positive non-farm payrolls report later this week. The news contrasts with the concerns out of the eurozone about disappointing German economic data and worries about whether or not private bondholders will agree to Greek debt restructuring by Thursday night.
As a result, the US dollar is moving with equities and commodities, heading higher even though the greenback often moves inversely to these asset classes. For now, the US dollar index is gaining, currently at 79.86. What happens next largely depends on news out of the eurozone during the next couple of days.
At 16:04 GMT EUR/USD is lower at 1.3105, down from the open at 1.3112. GBP/USD is also down to 1.5711 from the open at 1.571. USD/JPY is fairly close to the open at 80.8895 instead of 80.8920.
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