RTTNews - The dollar failed to sustain its early gains on Friday, coming under pressure in afternoon dealing as stocks remained in limbo and the price of oil tumbled back toward $70.
Theres was no first tier-economic data from the US to drive trading today, leaving market participants to ponder the direction the fragile economy will take in the coming weeks and months.
A number of key reports due out early next week will help clear up the picture. Data on home sales and orders of durable goods will be most attentively watched.
The dollar eased back to 1.4000 versus the euro, extending this week's run of directionless dealing. Traders seem unsure about the prospects for either currency, weighing the longterm impact of historic government spending on the greenback versus speculation that the eurozone will be stuck in an economic rut far longer than the US.
Germany's Federal Statistical Office said Friday that the producer price index or PPI dropped 3.6% year-over-year in May, after falling 2.7% in April. This was the lowest annual rate of PPI since April 1987.
The dollar dropped back towards a long-term low versus the sterling on Friday, slipping to 1.6550 by mid-afternoon. A move to 1.6663 will bring the dollar to its lowest level in more than 6 months.
Versus the yen the dollar gave back some its gains from the last session, slumping to 96.06. The dollar has been stuck between 94 and 99 yen for the past month.
The dollar saw little movement versus the loonie, staying near 1.1300. Canadian retail sales fell more than forecast in April after rising the previous three months, according to data released Friday by Statistics Canada.
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