RTTNews - The dollar was stable versus other majors Tuesday morning in New York, but was unable to take back more than a small fraction of yesterday's steep losses. The rally in US stocks may run out of steam as traders take profits, causing diminished risk appetite.
Amid speculation that the global economy is on the mend, the dollar dropped to 2009 lows versus a basket of its majors counterparts Monday.
On the economic front this morning, traders will be presented with a report on Personal Income & Outlays for June from the Bureau of Economic Analysis at 8.30 a.m ET. Economists expect a 1% drop in personal income, but a modest 0.3% increase in personal spending for the month.
The National Association of Realtors will release a report on pending home sales index for June at 10.00 a.m. ET. Economists estimate a 0.3% increase in the pending home sales index for June.
The dollar was steady at 1.4380 versus the euro, staying near yesterday's eight-month low of 1.4444. Against the sterling, the buck hovered around 1.6950, just off a 10-month low of 1.7004.
Rising commodities prices have helped to cripple the dollar of late versus its resource-linked counterparts. The buck paused versus the loonie, holding near yesterday's 10-month low of C$1.0630.
The dollar continued its run of choppy trading versus the yen, slipping to 94.75 from last night's level near 95.40. Both the dollar and yen have been pummeled by their higher-yielding counterparts over the past month.
In economic news from around the globe, the Eurostat said in a report that Eurozone industrial producer price index or PPI dropped 6.6% year-over-year in June, compared with a 5.9% fall in the previous month. The May month figure is revised from 5.8% decline reported initially. The PPI came in line with economists' expectations.
U.K.'s CIPS/Markit Construction Purchasing Managers' Index rose to 47 in July, a survey from the Chartered Institute of Purchasing & Supply and Markit Economics showed Tuesday. Economists were expecting the index to rise to 45 from 44.5 logged in June. However, the index stood below the neutral level.
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