The tail is wagging the dog today as the dollar showed significant strength well in advance of any move to the downside in the US equity markets. The S&P is now now up just 2 points after gaining 10% or more in early New York trade.

EUR/USD has fallen all the way back toward the 1.2550 level which has been a region of support in recent sessions. Options-related buyers are seen ahead of the 1.2500 level but stop-loss sell orders are perched just below.