Simon Harvey, head of FX analysis at Monex Europe, said in a research note that data showed headline inflation in the U.S. fell only slightly to 3.1% y/y in November, which did little to suggest that the Fed could cut interest rates early next year, and the dollar subsequently recovered most of its earlier losses. The data all but confirmed that the Fed would maintain its more cautious policy guidance, so traders bought back the dollar. However, the fact that the US dollar has only recovered its previous losses suggests that most traders are still waiting for new guidance from the Fed at this week's meeting.