US Dollar Index Slips as ECB Rumors Fly
US dollar index is slipping a bit as ECB rumors about how more liquidity will find be injected into the eurozone with out increasing the money supply. Greenback is also a bit lower as that position is contrasted with the possibility of QE3 for the US economy.
A lot is expected to happen this coming month. Tomorrow the ECB and BOE make economic policy announcements as they announce interest rate decisions. And, later this month, the Federal Reserve will have its own interest rate and policy meeting. Right now, this state of affairs is weighing on the US dollar as rumors swirl.
In the eurozone, there are expectations that liquidity is going to come from shifting money about, and not from “printing money.” Germany’s Bundesbank isn’t into printing money, and there are hopes that this solution will mean more liquidity for the eurozone, without increasing the money supply. Contrast this with the possibility of QE3 in the United States, and there is a reason that the dollar has slipped today.
For now, greenback is lower on the expectation that things could get weaker, real fast. Also weighing on the greenback is the fact that gold and oil have been strengthening in recent days.
At 13:44 GMT the US dollar index is down to 81.181 from the open at 81.484. EUR/USD is up to 1.2599 from the open at 1.2566. GBP/USD is up to 1.5904 from the open at 1.5871.
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Earlier News About the US Dollar:
- Important Week for Dollar: US Employment Data & ECB Policy Decision (2012-09-03)
- Another Weekly Loss of US Dollar, Decline Can Still Be Reversed (2012-09-01)
- Bernanke's Speech Drives Dollar Down (2012-08-31)
- US Dollar Lower as Jackson Hole Meeting Gets Under Way (2012-08-31)
- Dollar Jumps as Ahead of Jackson Hole Symposium (2012-08-30)