EUR/USD eventually falls back to test 1.13

Well, it has taken all afternoon and until after the European close for the dollar to really take advantage of the positive ISM data released earlier. That said, it still has not broken any fresh ground versus the Pound, Yen or the Euro. However, the Euro has eventually succumbed to a degree of selling pressure and that has taken it down to test the 1.13 handle a moment ago. Outside of the rebound in US stocks (Nasdaq 100 and S+P 500 still in the red though) and better than expected ISM data, the driver for the gains in the dollar once again rests with the rebound in US yields this afternoon. The 10 year note is now at 4.345%. The prospect of the Fed acting to lower rates on Wednesday evening is all but null and void now following the data over the past 2-3 days. The EUR/USD is right now at 1.1303