Investors are closely watching if the euro-dollar falls into $1.19 on a closing-price basis.

The evidence supports the view that economic fundamentals have steadied in the U.S. and the dollar may bounce back from its slump. Given the prospects the Fed may raise rates two more times at least, the dollar is more likely to rise than fall from the 115 yen level.

A strong inflation figure will heighten speculation the Bank of Japan will change its easy monetary policy from the spring, encouraging buying of the yen.

Without much economic and political news right now, Japan's equity strength is the main driving force, of course, in the yen's favor.

Fed officials are sounding hawkish. They're signaling further rate hikes and that's making investors feel safer buying the dollar.

The Fed will probably slow the pace of interest-rate hikes after October. Should the reports signal slower inflation, that's a factor to weaken the dollar.

There's optimism we will see quite good numbers out of Germany and any good data will encourage euro buying. The current level looks good to buy the euro.