FX CHAT: Profit-taking on US dollar likely temporary

With no US data out Wednesday, traders are booking profits on their long dollar positions from the greenback's rally on Tuesday. Dollar is lower against most major currencies, including the euro, yen and Australian dollar. However, look for the dollar to resume its upward climb on Thursday if 1Q GDP and April pending home sales deliver a positive surprise. Citi's Josh O'Byrne says forces are still in the dollar's favor as the Fed is the one central bank that's closest to pulling back on monetary stimulus. USD/JPY at 101.15, down 1.2%; EUR/USD at 1.2945, up 0.7%.

 (nicole.hong@dowjones.com)