The impact of the weaker ISM survey has knocked the dollar lower. The backdrop for the dollar is that it's just consolidating around here. It's a pause for now.

It's good for the U.S. to see a relatively weaker dollar, but it's not a good idea for the U.S. Treasury to signal it wants a weaker dollar. The decline in the U.S. currency could be faster than they wish.

We're seeing a weaker dollar mainly because of position covering.

The bond market's reaction has been relatively subdued since we have ISM tomorrow,

The survey was much weaker than expected indicating the bank's rate cut has done little to assuage the malaise that continues to afflict the U.K. consumer.

If they diversify from the U.S. dollar denominated assets, it would lower the value of the U.S. dollar relative to China's currency, the yuan, and make it more expensive for American companies to buy goods made in China.