The dollar for the most part traded within a consolidative range, ending the session at pretty much the same levels as yesterday's close. Flows were light for much of the day, though afternoon trade came to a virtual standstill.
EUR-USD was lifted over 0.8900 early on by reports of medium term fund bids. USD-CHF though, managed to hold the 1.6600 level, resulting in EUR-USD being capped off ahead of 0.8920. Even end of day London short covering failed to produce much upside impetus, the pair subsequently dipping back below 0.8900. USD-JPY found good steady support through the morning, eventually briefly breaching the 123.00 region. Spec longs though were quick to step in selling, profit taking for the most part behind the offers. This being said, the pullback was not broad based, 122.50 providing plenty of support for now. Elsewhere, USD-CAD was smacked sharply lower following an aggressive 75 basis point Bank of Canada rate cut. The reaction appeared to have been a buy the rumor, sell the fact type affair. AUD-USD remained stuck in the mud, for now apparently trapped between 0.5050 and 0.5100. Literally nothing in the way of U.S. data due out tomorrow.