The dollar was mixed versus other majors Tuesday morning in New York as traders geared up for this week's deluge of economic data, including today's pivotal readings retail sales and producer prices.
Speculation the policymakers across the Atlantic will be compelled to slash interest rates and take other steps to alleviate recessionary pressures continued to support the dollar versus the euro.
On the flip side, the buck remained on the defensive against the sterling as traders bet the dollar's move to a 23-year high earlier in the year may have been overdone.
The buck improved a penny from its overnight low near 1.3400 versus the euro, paring a fraction of yesterday's losses. Overall, the dollar has been in a holding pattern of late against the single currency, staying between 1.3000 and 1.3600 for the pat three weeks.
For the second day in a row, there was a lack of first-tier economic data from the euro area to drive currency trades.
The French current account deficit contracted to ?2.2 billion in February versus a revised ?2.5 billion level the month prior, according to a report from the Bank of France on Tuesday.
The dollar ticked lower versus the sterling, extending yesterday's losses to hit 1.4910. With the retreat, the dollar move closer to a 2-month low near 1.5000, set last week.
Versus the yen, the dollar continued to hover near the century mark, having slipped just below 100 overnight. The dollar has leveled off since hitting a multi-month high of 101.43 last week. Traders have bid up the value of the dollar relative top the yen lately amid concerns about Japan's ability to snap out of its economic funk.
Retail sales data highlights the US economic calendar on Tuesday, with the report scheduled to be released at 8:30 a.m. ET. Economists expect the report to show that retail sales rose 0.3 percent in March.
At the same time, producer production data for March will also be made public. At 10 a.m. ET, business inventories data for February is set for release.
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