The dollar extended its short-covering rebound today following a decent recovery on Tuesday from severely oversold levels. Today, the focus was on the EUR/USD exchange rate, which briefly rose above $1.20 for the first time in more than two years on Tuesday, before selling off. As well as technical selling around this level, investors evidently reacted to comments made by the ECB’s Philip Lane, who said that “the euro-dollar rate does matter,” implying the central bank was getting worried about the appreciation in the exchange rate. With the EUR/USD dipping to a low so far of around 1.1825ish, it remains to be seen ... (full story)