Dollar Offered as Markets Reverse Late Monday Move

Asia-Pac markets took the opportunity to sell into USD strength in the early hours Tuesday - a trend that Europe's been happy to extend as EUR/USD inches back towards the week's best levels and closer to the psychologically important 1.20 handle. This has pressured the greenback throughout, resulting the USD being the worst performing currency (as was the case yesterday morning) in G10.

The single currency is (modestly) outperforming, rising against most others while peripheral European government bond yields widen vs. Germany - moves accelerated following a speech from ECB's Schnabel, who stated that the ECB is not obliged to do what the markets expect from the central bank, pouring some cold water on expectations of a blow-out stimulus package at December's meeting.

The USD index is yet to slip through yesterday's multi-year lows at 91.506, but this will remain a focus headed into NY hours.

Focus turns to Canadian GDP, and US November ISM manufacturing numbers. Speakers include ECB's Lagarde, Fed's Powell and BoE's Bailey.