U.S. Dollar Starts the New Week Firmer

The U.S. dollar was a touch firmer in Asia on Monday as the euro took a knock from more aid rumblings over Greece, while technical signals were flashing oversold after almost five weeks of losses for the U.S. currency.

Still, a run of mixed data from the United States combined with hints of recovery in Europe and stabilization in China mean the U.S. economy is not so far ahead of the pack that it justifies a higher dollar either.

That left the dollar index stuck at 81.135, not far from last week’s seven-week trough at 80.868.

“A key focus is on the DXY as the decline approaches the important 80.50/88 support zone,” said analysts at JPMorgan. “This area includes the August ’11 uptrend line and June low.”


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