Dollar index lower ahead of US stock market opening and ISM release

The dollar has lost earlier gains overall now today. The GBP/USD rebound and the EUR/USD rising back above 1.08 has dented the USD index (USDX), as has the failure again of the USD/JPY to hold an earlier rebound back above 147 this morning. Hence, the USD index is now lower. The index closed in the US last night at 103.27 after falling below the 103 level at one stage yesterday (102.94 the low). It has traded to a high as 103.81 earlier today. The index is now dropping back to around 103.50 ahead of the US equity market opening and the 3pm ISM index. One reason for raw further downside in the dollar right now would rest with the higher than forecast initial jobless claims data, released a short while ago. Meantime, the markets expect that manufacturing ISM release to come in a little shy of the reported 47.4 reading in December. As noted here earlier, we need to watch the prices paid element and New Orders components of this index too. An update here will follow once all the data is revealed