The US dollar is continuing its recovery against its competitors during the European session. As North Korea falls silent on its threats of ballistic missile launches, the dollar is well on its way to recovering all of its losses. The euro/dollar pair has fallen to 1.1927, while the euro/pound has dropped to 0.9231.
The pound/dollar pair has slid to 1.2896, and according to the most recent data, is currently trading at 1.2929. The EURGBP cross is propping up the pound at the moment. Moreover, a slight bump in US government bonds is providing support to the dollar bulls.
Traders are adjusting their positions ahead of the publication of US data, which will include and ADP jobs report for the private sector as well as revised GDP figures. The euro/dollar pair looks to be targeting the 1.1900 mark. Considering that the rate hit 1.2070 yesterday on the back of geopolitical tensions, the downwards correction could push as far as 1.1855/60.