The U.S Dollar pulled back from a 3-week high against the EUR yesterday pressured by an improvement in risk appetite following gains in U.S. stocks. U.S. stocks rose on Monday as the passage of a bill overhauling healthcare ended uncertainty about the reform.
However, traders said the rebound will be short-lived because of the failure in a quick resolution over Greece during this week's summit. A Greek fiscal crisis has helped make investors more cautious of risky assets in recent weeks, boosting the greenback against the EUR.
The Dollar also turned lower against the British pound and Japanese yen, pushing down an index of the greenback's performance against a basket of currencies. The USD fell 0.5% to buy 90.11 yen, and 0.4% against the GBP to $1.5066.
The currency market will look ahead this week to U.S. economic data releases including reports on housing due on Tuesday and Wednesday and to a testimony by Federal Reserve Board Chairman Ben Bernanke on Thursday.