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There is some slight dollar strength in trade on Wednesday as the markets get into the morning Wall Street session, but for forex traders it may be that the European market close at 11:00 EDT will negate the moves. This week has seen the Usd based major pairs move in a very tight range, following equity markets that are spinning their wheels in May TeamLFB members said.
There have been a net 50 (fifty) pips of Usd movement this week, across all pairs, in a reflection of oil prices reversing off near-term highs, and currencies backing off from momentum reads that were oversold on the dollar across higher time-frames.
The next leg of Usd weakness can only come off higher Wall Street trade that then instigates Asian and European stock buying. Without that, the adage of Sell in May and go away, don't come back 'til St Swithern's Day may hold true. The trades that are setting up now are against the trend (Usd buying), and run into the European close. Therefore anything taken needs a reduced number of lots, and most of it to be banked at Target 1. the Trade Team members said.