US Dollar Index Gains as Traders Consider Consolidation

Yesterday’s buoyant tone and risk appetite have receded, leaving the US dollar to log gains against some currencies right now. The dollar index is heading higher, as the greenback gains against some of its major counterparts, especially the euro and the yen.

Yesterday, better news out of Europe, combined with an enthusiasm for stocks, led to a lower US dollar. The dollar index dropped below 80 as many traders looked for better yields. Today, though, many have taken a bit of a step back. Stock traders appear to be in consolidation mode after yesterday’s spectacular rally, and there is once again some focus on the eurozone and its problems.

Right now, though, a higher US dollar is putting downward pressure on commodities. Gold prices are lower today, along with oil prices. Greenback is showing strength against the euro and franc, as well as against the yen right now, which is boosting the dollar index performance. This is significant, as the US dollar is modestly lower against the pound today, and mostly flat against the Canadian dollar.

This mixed performance by the US dollar isn’t stopping the dollar index from rising, though. The gains made by the dollar against the euro and the yen are significant enough to keep the dollar index in positive territory.

At 13:08 GMT the dollar index is at 79.827, up from the open at 79.570. EUR/USD is down to 1.3072 from the open at 1.3126. USD/JPY is up to 81.3515 from the open at 80.8430. GBP/USD is up to 1.5977 from the open at 1.5926. USD/CHF is up to 0.9199 from the open at 0.9152. USD/CAD is mostly flat at 0.9902 from the open at 0.9903.