The dollar was narrowly mixed versus other major currencies Tuesday morning in New York as traders looked ahead to Thursday's pivotal summit of world leaders in London. In the meantime, there will be no shortage of economic data from the US to chew on.
Stocks fell sharply on Monday, fueling a renewed bout of risk aversion. The dollar gained on the euro and sterling, paring some of its big losses from the previous week. However, the dollar rally has run out of steam, with Wall Street poised to rebound Tuesday morning.
The economic calendar picks up on the final trading day of the month of March, with trading on Tuesday likely to be impacted by the release of reports on housing prices, consumer confidence, and activity in the Chicago-area manufacturing sector.
Additionally, Minneapolis Federal Reserve Bank President Gary Stern and Philadelphia Federal Reserve Bank President Charles Plosser are scheduled to speak at separate events.
President Obama will be leaving for for the G20 meeting in London later today, but hopes that the countries will agree to a coordinated fiscal boost appear to have been crushed by skepticism in many European governments.
The dollar eased to a 1.3300 versus the euro, down a bit from yesterday's 12-day high of 1.3112. Overall, the dollar its little changed from where it began the year back in January.
The number of unemployed in Germany soared in March as the economic slump deepened, official data showed Tuesday.
A report from the Federal Labor Agency showed that seasonally adjusted unemployed rose 69,000 in March, bigger than 50,000 increased in February.
According to a flash estimate from the Eurostat, Eurozone annual inflation slowed to 0.6% in March from 1.2% in February. Inflation has eased to its lowest level since the launch of euro ten years ago.
The dollar was stable versus the sterling Tuesday, holding near 1.4250. The dollar had fought back from recent losses during the previous session, moving back toward January's 23-year high of 1.3501.
Versus the yen, the dollar continued to hover near 98, unable to break above the elusive century mark despite repeated challenges. The buck remains well off its 13-year low of 87.08, set earlier in 2009.
Tuesday, Japan's Ministry of Land, Infrastructure and Transport reported that housing starts dropped 24.9% year-on-year in February, after declining 18.7% in January. Economists expected a drop of 17.6%. This was the third consecutive month of decline in housing starts.
For comments and feedback: contact email@example.com