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U.S. Dollar Struggles

The dollar remained lower versus the yen and euro before U.S. data today that may signal a mixed recovery in the world’s biggest economy, damping prospects the Federal Reserve will start reducing stimulus this year.

The greenback held losses against most major counterparts ahead of figures that may show jobless claims increased and durable goods orders fell, while U.S. consumer sentiment improved. The euro remained higher amid speculation a report this week will show a pick up in inflation, reducing the need for the European Central Bank to expand monetary easing.

“Looking at the recent U.S. data, the economy doesn’t seem strong enough for the Fed to start tapering in December,” said Yujiro Goto, a senior currency strategist at Nomura International Plc in London. “Unless we see a dramatic change to the scenario for tapering in January or March, dollar-yen will continue to range trade between 100 and 102.”

Bloomberg [1]

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