The dollar softened a bit versus its major European counterparts but held above the century mark against the yen Monday morning in New York as traders looked ahead to a pivotal week of economic and corporate news.
Monday's trading is expected to remain subdued, with European markets closed along with a number of Asian markets. US traders may trickle back to their desks following the Easter break, but with no first-tier economic data on tap until Tuesday, big currency moves are unlikely.
Later in the week, the Commerce Department's retail sales report for March, the housing starts report for March, the University of Michigan's consumer sentiment report for April, the Federal Reserve's industrial production report for March, and the April manufacturing surveys of the New York Federal Reserve and the Philadelphia Federal Reserve are the key economic reports traders could turn their attention to.
Also, earnings season gets into full swing this week with results from Citigroup (C), JPMorgan Chase (JPM) and Goldman Sachs (GS). Also, tech giants Intel (INTC) and Google (GOOG), and consumer bellwether Johnson & Johnson (JNJ) will impact market sentiment.
The dollar drifted slightly lower versus the euro Monday morning, easing to 1.3216 after hitting a 3-week high of 1.3087 late last week. Even with stock markets rebounding over the past few weeks, the euro has not enjoyed a boost from increased risk appetite, as many traders expect the European Central Bank to cut interest rates in the coming months in order to jump start the floundering euro area economy.
The dollar also came under a bit of pressure versus the sterling, slipping to 1.4706. With the slight retreat, the dollar moved to the lower end of a recent trading range. A week ago, the dollar hit a 2-month low of 1.4958.
Versus the yen, the dollar barely budged, staying just above the 100 mark. The buck has leveled off since hitting a multi-month high of 101.43 a week ago.
Japan's corporate goods price index or the producer price index continued to fall in March, with the latest decline being the steepest in almost seven years, official data showed Monday.
The Bank of Japan said in a report that the corporate goods prices slipped 2.2% year-on-year in March, compared to a revised 1.6% decline in February.
Friday, Japanese Prime Minister Taro Aso announced a stimulus package worth 15.4 trillion yen or US$150 billion to combat recession in the second largest economy.
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