RTTNews - The dollar remained under pressure versus the euro and sterling Wednesday morning in New York amid concerns about that the massive debt accrued by the US in the process of attempting to jumpstart the world's biggest economy.
Looking ahead to today's economic calendar, traders are likely to focus on trade balance data for April from the Commerce Department. The deficit is expected to expand to a negative $29.0 billion from the previous report of a negative $27.6 billion. The report is set for release at 8:30 a.m. ET.
Later in the day, trading is likely to be impacted by the Treasury Department's budget for May and the Federal Reserve's Beige Book, which compiles commentary on recent economic activity in the 12 Fed districts.
The dollar dropped to 1.4143 versus the euro, moving closer to a 5-month low of 1.4338 from about a week ago. After seeing significant strength over the past year, the dollar has given back a big portion of its gains since the start of May. On Tuesday, Goldman Sachs Group recommended clients buy the euro due to increased risk appetite for higher-yielding currencies.
Wednesday, Germany's Federal Statistical Office confirmed a nil growth in the consumer price index in May, down from a 0.7% rise recorded in April. The annual rate in May was the lowest since May 1987.
The dollar extended its losses from the previous session versus the sterling, slipping to a weekly low of 1.6473. With the loss, the dollar moved closer to a 6-month low of 1.6662, set June 3.
U.K.'s visible trade deficit rose to GBP 7 billion in April from a deficit of GBP 6.5 billion in March, the Office for National Statistics said Wednesday. Economists had forecast the shortfall to contract to GBP 6.4 billion.
The dollar held its ground versus the yen, staying near 98. Earlier in the week, the buck hit a 4-week high of 98.87 before leveling off.
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