Towards the end of the year, we do see the dollar turning down as it loses its rate support.
The dollar remains underpinned against both the euro and the yen ahead of the key employment report from the US.
The dollar remains in recovery mode after last week's sharp sell-off.
The dollar has depreciated sharply against the euro and more modestly against the yen with dollar sentiment deteriorating as fears increase over the outlook for the US economy.
Given that the employment report will be released on Friday, the appetite for selling the dollar may be limited especially with the consensus for non-farm payrolls gradually creeping higher from the original reading of 200,000.
His number one objective will be to stress continuity. Continuity means more interest rate increases, so that means the dollar can keep going up.
Overall sentiment hasn't changed significantly, obviously we've had a reversal and the selling has ceased temporarily... But the strength of the dollar has been relatively modest.