The dollar hit the skids versus the euro and sterling in thin trading Monday as traders looked ahead to later in the week, when earnings season kicks into high gear and a slew of economic data will be released.
With no first-tier economic data to chew on Monday, most traders remained away from their desks, extending the Easter holiday as markets were closed in Europe and in a number of Asian countries.
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 fell sharply versus the euro on Monday, wiping out its gains from the week before. The dollar slipped to a weekly low of 1.3380, pulling back from a 3-week high of 1.3087, set last Thursday.
The European Central Bank is expected to lower its key interest rate to near zero at its May meeting. Until then, the euro may find support in lieu of evidence that the European economic situation has deteriorated further, requiring more speedy intervention.
The dollar also weakened versus the sterling, falling two cents from a recent trading range to hit 1.4865. With the retreat, the dollar came within a penny of a 2-month low, set last Monday.
The buck managed to hold its own versus the yen amid concerns about Japan's ability to lead any global economic recovery. The dollar stayed just above the 100 mark for most of the day, but with unable to build on last week's multi-month high of 101.43.
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