Dollar stages a slight fight back

The dollar had a slight fight back on Friday, with profit taking helping the greenback regain some of its losses. Today’s focus will be on the ISM manufacturing data which if it declines further while key European data remains firm, may push the greenback further towards $1.53 against the euro. If the ECB keep rates unchanged this week, and the Fed as expected, cuts rate on or before March 18th, we may see the dollar continue it’s slide still further. Michael Woolfolk at Bank of New York Mellon said “The dollar may bounce. The more the dollar falls… the more likely we’ll have a dollar correction, but it shouldn't be mistaken for a dollar bottom”. UBS says its short term forecast for the euro-dollar is as the high end of $1.50-$1.55 range.