There is a bit more of a push and pull feel now on the session as the dollar finds a bit of a footing as risk sentiment turns the other way around. EUR/USD fell to a low of 1.0175 quickly before trading back to near 1.0200 currently. Buyers are still in near-term control though but it highlights some nerves going into the ECB policy decision tomorrow.

Elsewhere, GBP/USD has also fallen back below 1.2000 and AUD/USD has seen earlier gains trimmed with a drop from 0.6930 to 0.6900 near the lows for the day.

As much as the dollar was softer earlier in the week, the moves are largely viewed as a retracement still. It is tough to bet on a major turnaround in sentiment for the greenback unless something changes at the FOMC meeting next week.

This article was written by Justin Low at www.forexlive.com.