The US dollar is falling broadly and that's helped to boost the euro.
The market continues to digest a soft ISM US services report from Friday, concluding that the Fed is less-likely to be hawkish. That's led t board USD sales and a 1% rally in the S&P 500.
The euro is also a slight outperformer against the field as the market continues to cheer warm European weather and beaten-up European valuations.
Technically, this is a nice two-day reversal after hitting a four-week low on Friday. It gives the euro another crack at the May high of 1.0787.
I think many market participants are now trying to front-run a soft US CPI number on Thursday. The real test for the market will be if the USD weakness and strength in stocks can continue after CPI or of heavy profit taking hits.
