FX Closing Comments

The Dollar came crawling back today, largely in response to dovish commentary from the European Central Bank. Many traders were expecting some indication from the ECB president that rates would be rising in May, owing to money supply growth and improving data. When this did not happen, Dollar bulls took over and recouped a portion of its recent losses, most notably against the Euro. The big event tomorrow will be the U.S. non-farm payroll release,which is estimated to be 190,000. With Treasury Secretary Snow commenting that the figure will be a "good number," there is an added amount of mystery to this month's key release. It also seems likely that today's Dollar rebound may have stalled early, with traders leery about being caught long the greenback ahead of the NFP. A strong reading may provide the cover for an additional Dollar push.