After a pause on Monday, the dollar restarted the rebound from the end of last week. The euro had popped up early in Asia on media reports that US hedge fund returned to European assets and to the single currency. However, the rebound had no strong legs. Early, in European trade there were headlines from Fed Plosser. He repeated that the Fed should reduce asset purchases as soon as next month. His view is well-known in the market, but it keeps US monetary policy on the radar of markets. This helps to protect the downside of the dollar. During the morning session EUR/USD held a tight range close to, mostly slightly above the 1.30 mark. The news flow from Europe was mixed.
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KBC