Currency strategists at BNP Paribas say that the greenback may rebound from the 2-month minimum versus euro during the next few days. The specialists underline that many investors went short on US dollar and the data calendar provides a number of potential triggers to unwind these positions.

The FOMC meeting Wednesday will be very interesting in the wake of reports that the Fed plans to review its economic forecasts on improved confidence and recovery.

While the Fed is expected to maintain the second round of quantitative easing (QE2) until June, a suggestion that the program will be actually finished June may be a good driver for the greenback, believes BNP Paribas.



Chart. H4 EUR/USD

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