RTTNews - The dollar extended its losses from the previous week Monday morning in New York as potential gains for US stocks increased risk appetite for higher-yielding currencies.
Green shoots on the economic front may prove to be yet another mirage, but for now market players are jumping back into to a market that may have been oversold earlier this summer.
The unfolding week's economic calendar is very light compared to the previous week, which saw the release of several market moving numbers. The spotlight is likely to be on the existing home sales report to be released on Thursday.
The dollar dropped to a 6-week low of 1.4243 versus the euro Monday morning. A move to 1.4339 would take the dollar to its lowest point in more than 6 months.
German producer prices continued to drop for the fourth month in June, data released by the Federal Statistical Office showed Monday.
The producer price index or PPI fell 4.6% year-on-year in June, the fastest fall since December 1968, when producer prices dropped 5%.
The buck slipped to a 3-week low of 1.6532 versus the sterling. A move to 1.6744 would take the dollar to its worst level since October 2008.
House prices in the U.K. increased in July as buyer activity remained strong on rising confidence that the market has passed the bottom, a closely watched survey showed Monday.
According to property website Rightmove, house prices rose 0.6% in July from the previous month compared to a 0.4% fall in June.
The dollar extended a dramatic move to the downside versus the loonie, slipping to a new monthly low of C$1.1010.
Meanwhile, the dollar held its ground versus the yen after reaching a 2-week high of 94.77. Earlier in July, the dollar hit a 5-month low of 91.73.
The Conference Board is scheduled to release a report on the U.S. leading index for June at 10 AM ET on Monday. The consensus estimate calls for a 0.5% increase in the leading indicators index for the month.
Atlanta Federal Reserve Bank President Dennis Lockhart is due to deliver a speech on economic outlook in Nashville, Tennessee to the Rotary Club of Nashville at 1:30 PM ET.
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