The dollar was able to make back a little of the ground it has been losing the last week or so following some (mildly) reassuring words from Bernake yesterday and a better than expected third quarter GDP report coming in at 2.2%.  This news was countered, however, with more bad news from the housing sector (new home sales dropped 3.2% in October) and a neutral Beige Book report.

Sentiment is now mixed as to whether the dollar can gain some strength or if this is simply a short hiccup in the continuing dollar bears.  The Core PCE Price Index comes out tomorrow followed by some manufacturing news on Friday.

It is quite likely, due to the momentum if nothing else, that the dollar weakness will persist through at least the end of the week.  If the EUR/USD does not drop below the 1.3100 mark, it will likely hold for some time. 

Happy Trading!!!