The market was reluctant to push the euro above $1.2150 and we've seen it slowly come down from there during European trading.

The dollar is drifting downwards. There is an inclination to sell dollars -- the current account deficit is the underlying concern. We need to see a big upward surprise in U.S. data to change the sentiment.

Although growth and inflation have tracked somewhat below the forecasts made in the (November) Inflation Report, the magnitude has not been seen as sufficient to warrant a fine-tuning on the rate front.

I don't see (Snow) deviating from the same script at all this week.

Certainly, the tone of the Inflation Report did not hint at such a pronounced division within the central bank, but rather one where the majority is content to overlook shortfalls in economic activity in an environment where inflation is tracking close to target and expected to continue doing so over the forecast horizon.

In the end, rates are set to rise and it would be a mistake to see recent comments as a commitment to keeping rates unchanged for a prolonged period -- low, yes, but not unchanged.

The language from the ECB suggests they are not promising to do anything but they are not promising not to do anything either. The market will seize on anything that suggests a greater chance of a December rate hike.

The interesting aspect of the market reaction to the generally strong data released today is that the upside surprises have failed to provide any upward impetus to the dollar.

It's not clear what will happen to Europe. A lot of questions have been raised by this vote and none of this is immediately positive.

Structural nervousness creeps into the market from time to time but interest rates still favor the dollar.