Dollar Rate Today (Thurs 24/10): USD lower vs GBP and EUR but further losses will be hard to come by as USD-Index faces key support

EURUSD cleared offers pre-1.3800 and advanced to 1.3822 ahead of October preliminary PMI readings across the zone which disappointed.

The pound dollar rate is today 0.17 pct higher than the level seen at last night's close at 1.6189.

The euro dollar rate is today 0.1 pct higher at 1.3789.

Keep in Mind: The above are inter-bank quotations. Your bank will levy a spread when passing a retail rate; hence why you never get close to the market rate. An independent FX provider will however guarantee to undercut your bank's offer, delivering up to 5% more currency. Find out more here.

Is this the end of the US dollar recovery, Or will USD find support?

"The USD managed a general recovery against riskier currencies yesterday, but fell back against the JPY and CHF as the initial positive equity reaction to the employment report gave way to some uncertainty and yields generally fell more sharply in the higher beta markets," say Lloyds Bank Research in a morning note to clients.

Lloyds go on to point out that it is quite difficult for US yields to move substantially in the near term, given the lack of reliable information on the US economy and uncertainty about the outcome of Budget talks, so the USD’s fortunes are more likely to be determined by news from elsewhere.

However, the US dollar could yet find support going forward from here.

"The USD index is approaching the lows seen in October and December 2012 and February this year at 79, and this is likely to be tough to break without further clear US news, so while the USD remains under pressure, downside looks modest," say Lloyds.

Recently, markets started to discount a scenario in which the Fed remains side-lined until spring next year. This is a negative context for the dollar.

After the recent repositioning on the currency and interest rate markets, quite some bad dollar news (Fed sidelined for long) should be priced in.

"However, the break above 1.3711 after the payrolls is another illustration that USD sentiment remains negative, even as we think that the valuation of EUR/USD is becoming stretched when nearing the 1.40 barrier," says Piet Lammens at KBC Markets.