The dollar's softer tone on Tuesday seems to be mainly due to position adjustment among market participants, he added. May will say Britain will not seek a Brexit deal that leaves it "half in, half out" of the European Union, according to her office, in a speech setting out her 12 priorities for upcoming divorce talks with the bloc. Those priorities will include leaving the EU's single market and regaining full control of Britain's borders, several newspapers have reported, reinforcing investor fears of a "Hard Brexit" which have pummelled the pound. Investors are also looking to speeches by U.S. Federal Reserve officials this week and Republican Donald Trump's inauguration as U.S. President on Jan. 20, for near-term catalysts on the dollar and Asian currencies. Stephen Innes, senior trader for FX broker OANDA in Singapore, said the dollar's broadly weaker tone on Tuesday was probably driven by position adjustments. "If you look at this long dollar trade, which is still on the books, it hasn't been cleared out," Innes said. Asian currencies have risen broadly so far in January, with some of those gains coming after a news conference by Trump last week offered little clarity on his fiscal policies and disappointed dollar bulls. REUTERS
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