[ForexNews]

The dollar opened little changed on a dearth of overnight news and lower equity futures, but early news here was risk positive and Euro/dollar broke 1.5000 - finally! Yesterday's stronger dollar was blamed on lower equities, in turn on disappointing US housing starts, despite the quarterly housing start gain at 42.% annualized, largest since 2002. The big overnight G10 mover was the pound, up 3cents past 1.6600 on a short squeeze as Bank of England minutes showed a unanimous policy vote, eliminating chances of more QE upcoming. Dollar bloc currencies moved off their highs, and CAD was notably weaker early on as oil backed down from $79; yesterday's dovish BoC comments (CAD strength is expected to "more than fully offset" recent positive developments) weakened CAD almost 3 pennies near 1.0600 but risk is helping it today. EM FX continue stronger, though BRL weakened on fall-out from re-imposition of the IOF tax. MXN is holding under 13, helped by passage of a tax bill, but strategists note it's " fiscal miscellany...not a reform" and doesn't rule out a downgrade. Asian FX gainers are taking a breather while EMEA catches up , notably Russian Ruble, near early 2009 highs, and the central bank was reported intervening heavily yesterday. This underscores the theme of risk-positive trades boosting currencies of EM, whose central banks then need to buy USD to contain local currency strength and then sell USD to re-balance their reserves. Euro/dollar is the winner, but note that EZ politicians re already starting to complain!