USD rebound continues, as we enter what seems to become the fourth consecutive daily gain on the US Dollar index (DXY). FOMC Meeting Minutes for the January meeting may shed some light on the faith of the USD – but for those we will have to wait until later this evening when the release of the data is due.

Until then our focus will shift to the Preliminary readings for the Manufacturing and Services PMIs for the month of February, for the EZ region.

EURUSD was pressured lower inevitably as the USD continued to garner support. Attempts higher yesterday fell short of our anticipated 1.2421 because the highest was 1.2397, but the correction after the earlier highs materialised as expected. Yesterday we saw session lows of 1.2320 and this morning we are already testing those lows.

Gold saw some solid declines as well, after opening yesterday’s session at $1346.43 it closed at least $16 lower. The yellow metal is currently trading at $ 1326.60.

The USD recovery we are experiencing is probably the reult of short covering after last week’s record lows.