Old Fears About Euro Have Returned.Buy the rumour, sell the fact. The strengthening of the US dollar is due to expectations of positive labour market statistics, a chance of another easing from the Fed in March fell to 45%, and demand for safe-haven assets in a changing world.
Dollar Consolidates as American Exceptionalism Returns.Drivers: The US dollar is trading narrowly mixed against the G10 currencies. The market has an eye toward the US employment data, which often roils trading, due Friday.
US ISM services set to reflect a slowdown in activity towards the end of last year.The estimate is for the headline PMI reading to drop to 52.3, down from 52.6 in November. That will point to a further moderation in business activity to round up the year, as reflected in the S&P Global PMI report yesterday here.