John McCarthy Dollar Quotations

Today we are just recovering from the major dollar rally of last week. We could see one more dollar spike up before the trade figures on Wednesday, which will underscore the issues affecting the dollar.

The data was slightly positive. In general, the dollar was a bit better bid. But it's very thin trading ... so the move was a bit exaggerated.

Dollar buyers ran out of gas once we couldn't break through $1.2750 and 106 in dollar/yen and as a consequence we started technically trading off those levels.

The numbers were obviously better than expected. It's possible we could see a little further dollar buying.

The numbers produced a slightly firmer dollar: they weren't dismal and as a consequence people are taking back some of their short dollar positions.

The dollar is supported overall in broader terms by the likelihood that rates will move higher here than they do abroad.