RTTNews - The dollar was steady versus most major currencies Monday morning in New York as traders continued to assess conflicting signals about the health of the world's largest economy.
The buck weakened last week during a four-day winning streak for equities, which fueled appetite for higher-yielding currencies like the euro and sterling. Subsequently, rising commodity prices hurt the dollar versus resource-linked counterparts, particularly the loonie.
With no important economic report scheduled to be released from the US on Monday, currencies could remain captive to what happens in stock markets. Futures on Wall Street were pointing to a slightly higher open following gains in Europe and Asia overnight.
The dollar gave back some of its overnight gains versus the euro, easing to 1.4325. In the process, the dollar moved back toward its 2009 low of 1.4446, set earlier this month.
Eurozone industrial new orders increased 3.1% month-on-month in June, after falling 0.5% in May, the Eurostat said on Monday. The new orders in May was revised from 0.2% fall reported initially. Economists were looking for an increase of 1.7%.
The dollar extended its run of choppy dealing versus the sterling, losing its overnight gains to trade at 1.6500. The pair has leveled off since the dollar hit a 10-month low of 1.7012 early in August.
Business levels in the British services sector continued to be below normal in the third quarter, but not as bad as those were in previous three quarters, the service sector survey conducted by the Confederation of British Industries showed Monday.
The dollar rallied versus the yen overnight, but was on its way lower to 94.60 approaching mid-morning. Earlier, the buck reached a 5-day high of 95.08.
Against the loonie, the dollar held near C$1.0785, staying within hailing distance of its 10-month low of C$1.0630, set a few weeks ago.
Later this morning, Statistics Canada releases retail sales data for June. Economists expect a month-over-month decline of 0.3 percent, compared with a gain of 1.2 percent in May.
Economist Nouriel Roubini, who predicted the magnitude of recent financial troubles, said that he sees a big risk of double recession. The professor of economics stated that the global economy might bottom out in the second half of the year and the economies in the U.S and other European countries might witness anemic or below trend growth for at least a couple of years.
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