RTTNews - The dollar gained on the euro and sterling Monday morning, but ticked lower against its Japanese counterpart as stocks looked set to extend their losses from before the July 4th holiday.
With traders expressing risk aversion, the dollar and yen have experienced some buying interest over the past few days. Economic data points released in July have indicated that the global economy may not be on the mend as quickly as once hoped for, giving market players reason for pause.
The unfolding week's economic is fairly light, with very few reports due out to be released. The Institute for Supply Management's services sector index for June is out Monday morning.
The ISM's services survey is expected to show slightly improved conditions in the sector, although it is still too early to call for an expansion. The sector is expected to have benefited from a rise in equity markets and a narrowing in credit spreads. However, weakness in freight activity, which is impacted by declining inventory levels, should act as a dampener.
The dollar reached a monthly high versus the sterling Monday morning, breaking out of a long trading range to hit 1.6130. Meanwhile, the buck rose to a two-week high of 1.3881, having jumped 3 cents since last Wednesday.
The results of the latest Sentix survey revealed Monday that the headline indicator for Eurozone unexpectedly fell to minus 31.3 in July from minus 27 in June. Economists were expecting the index to rise to minus 25.
The dollar continued to tick lower versus the yen this morning, easing to 95.27 after the Bank of Japan upgraded its regional economic assessment for the first time in three years. The central bank said economic conditions in the Japanese economy continued to be severe, but they started to stop worsening amid the slowing pace of deterioration.
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