Dollar index battles back but it is not all one-way traffic

Earlier today the US dollar came under further pressure versus its major counterparts and that pressure delivered a further drop for the USD index (USDX). The index fell to a session low at 103.21. That was below the close on Friday at 103.40 and well below the previous rebound high seen last week, when it topped the 104 handle, reaching 104.21. Well, since that low earlier today it has been grinding its way back up, even as the USD/JPY falls below 148.75. Hence, this is not by any means a one-dimensional rebound and of course much of the Yen strength today is about the major Yen crosses again reversing their most recent gains, particularly the EUR/JPY. I have now received more information about the outlook for the US currency coming into the month end. At least 3 major interbank players are now citing quite marked dollar re-balancing selling for the end of the month. As usual though, that does not mean it will happen, but one that is most definitely on the radar of a number of leading players now. Although the Dollar is still fighting for traction this afternoon, coming off its earlier lows. However, US currency has some way to go before making that rebound look a lot more convincing than it is just now