No good explanation for US dollar weakness today.
It's hard to fade what you can't explain but these kinds of squeezes in the dollar have been gifts in the past. It's assuredly flow-driven but the reason traders don't want to step in front of it is because non-farm payrolls are due to be released into a thin market on Friday.
I think the risk-reward is beginning to skew towards USD longs through non-farm payrolls but it's still a gamble. The better trade might be to buy the dollar after the jobs report -- no matter what the data. Naturally, if it's awful you might want to be a bit more patient but time and time again, the US dollar has had stronger reactions to good news than bad.
It's only a matter of time until some economic data points begin to run better and the trend of US dollar strength is still your friend.
