The dollar seems to be going nowhere fast. Everyone is waiting for a clue to follow.

The dollar has been stuck in a very narrow range for the past few weeks and does not look as though it will be moving anywhere else soon. EUR/USD has been hanging around 1.07. The Japanese yen is firmly entrenched at around USD/JPY 120. The exception is the GBP, which has firmed against the dollar to over 1.50 from 1.48 in the past week or so.

The big sticking points for the markets continue to be the lack of movement towards a resolution about the financial troubles with Greece. It is unlikely that a solution will be found soon. On top of that China’s slow slide into lower growth is affecting the markets.

The good news is that the Russia/Ukraine crisis to have diminished, especially as far as its impact on the market sis concerned. Moreover, President Vladimir Putin’s political grand standing seems to have been reined in. He is making conciliatory noises towards the West trying to get back into the club he was dumped from.

The increase in the price of Brent crude to over $62 per barrel is definitely taking some of the wind out of the dollar’s sails. But the overall direction of the greenback remains unchanged. Stay long dollars.