RTTNews - The dollar failed to gain traction against the resurgent yen Monday morning in New York, but continued to hold its ground versus the euro and sterling.
Concerns about government spending and a potential second round of economic stimulus have led traders to the safety of the yen, especially in light of economic forecasts for Japan, which are sunnier than once feared.
The Treasury budget, a monthly account of the surplus or deficit of the federal government is due to be released at 2 PM ET on Monday. The budget is considered as an indicator of budgetary trends and the thrust of fiscal policy. Economists estimate a deficit of $77.5 million for June.
Data on retail sales, producer and consumer prices, housing starts and weekly employment will guide trading later in the week.
The dollar edged slightly lower to a new 5-month low versus the yen, hitting 91.73 before inching back above 92.
Monday, a monthly survey from the Cabinet Office showed that Japanese consumer confidence rose to 38.1 in June from 36.3 in May. However, the index stood below the expected reading of 39.5.
The dollar continued its run of uncertain trading against the euro, easing back to 1.3975 from an overnight high near 1.3900. The pair has failed to sustain any direction over the past two months amid concerns that the euro zone may lag behind any global economic recovery.
Meanwhile, the dollar improved versus the sterling, rising to 1.6050 before leveling off. With the gain, the dollar moved back toward last week's monthly high of 1.5982.
The dollar remained stuck in the mud versus the loonie Monday morning, holding around C$1.1632. Last week, the dollar hit a monthly high of C$1.1722 against its petro-linked Canadian counterpart as the price of oil slipped below $60.
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