Not sure why the dollar is easier after the upbeat US data…. Empire State manufacturing data was weak but about the only thing they make in NY state these days is reservations…
If US data continues to improve, the Fed will be able to trim the amount of QE it pumps into the system. That will be a dollar plus. If at the same time, European sovereign debt woes extend from small economies to important ones (like Spain), the euro will struggle, big time.
EUR/USD rallied to 1.3653 after the data and now trades at 1.3636. USD/JPY has slipped below 83.00.