Greenback recovery continues apace

The dollar is continuing its recovery against other majors, brushing aside negative sentiment that earlier this month threatened to push it through key support levels. The greenback’s improved outlook stems from a healthy combination of positive fundamental, flow and positioning factors.

On the fundamental side US data has generally surprised on the upside since the Federal Open Market Committee’s 50 basis point rate cut on November 6. Over the past week strong US home sales, durable goods an