The bloodbath that has been ripping apart the dollar has temporarily ceased as most currency pairs now find themselves in a small range.  There were no major financial releases today and thus nothing really moving the currency for the time being.  However, it is important to note that with this pause the dollar has retraced some of its losses from last week.  One might think this would be a good time to get a little of those huge movements back, but apart from a small retracement overnight, everything remains virtually where it was at the beginning of the weekend.

Tomorrow brings the beginning of some important financial news culminating in the Non Farm Payroll figure this Friday.  

Once again the dollar is under severe pressure as it faces renewed lows against the Euro and the British Pound.  Although the Core PCE Price Index came out in line with expectations Personal Income was below expectations and unemployment claims came in at 357K.  This news was followed by a Chicago PMI below 50 which further kicked the dollar while it was already down.  These mixed news figures gave the dollar bears renewed strength and pushed the EUR/USD to 1.3274 and the GBP/USD to 1.9700.  

Expect the dollar to continue to decline as the trend is clearly pushing it lower and lower. 

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.