The US dollar rebounded in opening trade in New York yesterday to recover from a fall to a 13-month low ahead of the Jackson Hole symposium later this week.
Focus directed at the United States (US) manufacturing and services PMI data published at the beginning of the New York session influenced the direction of the movement of the US dollar.
A strong August services sector reading that beat forecasts has re-injected some strength into the US dollar even though readings for the manufacturing sector showed a contraction.
The US dollar only showed strengthening at the beginning of the session when the data was published but the momentum started to fade as the trading headed towards the end of the session.
The same data also published in the previous European session saw a dismal reading in Germany, but excellent in the UK with figures for both sectors surpassing last month's reading.
Investors remain cautiously awaiting the start of the Jackson Hole symposium on Friday with the main focus on Federal Reserve (Fed) Chairman Jerome Powell who is expected to deliver an important message on monetary policy ahead of the September meeting.
Other major currencies in the market started to waver a little when the US dollar started to 'wake up' from the previous continuous fall.
However, the situation is still in a state of caution as the currency king remains at risk of shrinking with the expected impact of Powell's dovish tone reaction in his speech later tonight.
