Dollar rebounds as EUR/USD gains blow out

Earlier this morning the dollar was under a degree of downside pressure. That was being led by the USD/JPY. Eventually the USD/JPY fell to a session low so far at 150.12, as the EUR/USD lifted to a new high on the week at 1.0866. However, over the course of the past hour, the dollar has staged a recovery and that has seen the EUR/USD slip back to a low at 1.0842. The USD/JPY has rebounded close to 150.30. Of course the price action across these two and the GBP/USD as well has been very contained and major FX volatility remains at very low levels. The bottom line here is; we are probably going to have to live with this (unless there is fresh significant news) until we see what the US PCE data has to reveal on Thursday. Meantime, it is probably a case of trading the existing ranges and taking small bites out the markets as and when you can. The EUR/USD is just now trading at 1.0848