Oil ends the day down 9% as the $50 area continues to limit rebounds while a very successful Treasury auction has calmed fears that China may never buy another bond (suspiciously, the White House made nice less than 24-hours before the auction. No flies on Obama.) . Gold has pulled back modestly as hard assets lose some of the flight-to-quality demand that dominated the latter part of last week and the early part of this week.
Against this backdrop the greenback will likely see a modest rebound but with marets very thin, any decent-sized order can overwhelm whatever minor fundamental influence the market may be watching at any point in time. Look for markets to stay pretty thin until the Fed releases its statement tomorrow afternoon.
Near-term, The Canadian budget (today and the response from the opposition Liberal party (tomorrow), German CPI (tomorrow) and UK home prices (Thursday) will be closely watched.
EUR/USD trades quietly at 1.3170 with USD/JPY at 88.85.