Given the major US Thanksgiving public holiday on Thursday, we suspect this period of position-unwind can continue a little further.

Inputs into FX markets this week will include second-tier US data and the release of minutes to the 1 November FOMC meeting. The market seems in the mood to look out for some dovish headlines here, and this can prove a negative dollar event risk tomorrow evening.

DXY has decent support at 103.50, marking the 50% retracement of its rally from July. This could mark the lower boundary of this week's trading range, while the top could be the 104.40/104.50 area.