The US Dollar has recovered so far at the start of early trading today as expected. The USD has been down everyday this week and it is looking pretty oversold. The fact that the USD is coming up on major long term support should be observed. The USD should continue to bounce in London and US sessions as equity volumes cool down to end the week. Continued USD bounce next week will be determined by a round of US data and some FOMC commentary, most notably Janet Yellen at a conference on Tuesday.
It would be a good strategy to buy USD dips as the the long term outlook for the USD remains strong through 2014 with the Fed to continue tapering and the economy recovering at a faster pace than European economies. Notable event risk today is University of Michigan Confidence being released at 13:55 GMT today and is expected to come in at 81, with previous reading of 80.