RTTNews - The dollar pulled back versus other major currencies Tuesday morning in New York as stocks looked set to stabilize, fueling increased risk appetite. Over the past few days, the dollar managed to find its footing following a tough stretch that saw it drop to muli-month lows by early June.
Traders may react to a trio of reports that are scheduled to be released ahead of the markets open. The Commerce Department is set to release a report on the housing starts for May at 8:30 AM ET. Economists expect an increase in starts to 485,000 following two straight months of declines.
At about the same time, the Labor Department is scheduled to release data on producer price inflation.
The industrial production report is scheduled to be released by the Federal Reserve at 9:15 AM ET. Economists expect industrial production to have declined yet again in May.
The dollar slipped back to 1.3900 versus the euro, down from last night's 4-week high of 1.3747. Earlier in the month, the dollar bottomed out at a 5-month low of 1.4338 before stabilizing.
Eurozone annual inflation stayed flat in May, the lowest since records began in 1996, a final report from the European Union statistics office revealed Tuesday. The statistical office confirmed the initial estimate released on May 29. Consumer prices were up 0.1% month-on-month in May, while economists were expecting a nil growth.
Versus the resurgent sterling, the dollar eased to 1.6460 after hitting a weekly high of 1.6208 yesterday. With the retreat, the dollar slipped back toward a 6-month low of 1.6662, set earlier in June.
U.K.'s annual inflation slowed to the lowest since January 2008 as food inflation slowed in May, official data showed Tuesday. However, inflation stayed above the central bank's target for the 20th consecutive month. Consumer price annual inflation eased slightly to 2.2% in May from 2.3% last month.
The dollar firmed up a bit versus the yen, bouncing back above 97 after hitting a nearly two-week of 96.06 when the Bank of Japan maintained its key interest rate near zero, but boosted its economic assessment.
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