Dollar Little Changed On Light Data Day
The dollar is turning in a mixed performance against its major rivals Monday afternoon, but remains little changed overall. The lack of U.S. economic data is keeping some investors on the sidelines at the start of the new trading week. Things will begin to pick up on the economic front beginning Wednesday, with the release of the producer price index and wholesale trade data.
The dollar dropped to an early low of $1.1790 against the Euro Monday, but has since rebounded to around $1.1750.
Eurozone investor sentiment improved in July after a sharp slide in June, survey data from think tank Sentix showed Monday. The investor confidence index rose unexpectedly to 12.1 in July from 9.3 in June. The expected score was 9.0.
German exports rebounded from April despite trade war disputes, but imports growth weakened in May.
Exports grew by a more-than-expected 1.8 percent on a monthly basis in May, reversing a 0.3 percent drop in April, figures from Destatis showed Monday. Shipments were expected to gain 0.7 percent.
Meanwhile, imports rose at a slower pace of 0.7 percent after climbing 2.6 percent in the previous month. Nonetheless, this was the second consecutive rise and confounded economists’ expectations for a 0.5 percent fall.
Consequently, the trade surplus rose to a seasonally adjusted EUR 20.3 billion in May from EUR 19 billion in April.
France’s economy is set to expand as previously estimated in the second quarter, according to a monthly survey from Bank of France.
The central bank forecast 0.3 percent growth for the second quarter, the same rate as estimated previously.
U.K. foreign secretary Boris Johnson resigned from his position, in the wake of conflict in the Cabinet over Brexit.
Boris Johnson’s resignation put Theresa May’s government into more chaos, amid her attempts to keep the UK within the single market and customs union.
It follows the resignation of Brexit secretary David Davis on Sunday. Investors interpreted Davis departure as an indication that a soft Brexit has become more likely.
The buck climbed to a high of $1.3188 against the pound sterling Monday, but has since eased back to around $1.3250.
The Bank of Japan maintained its assessment for all nine economic regions on Monday, according to Regional Economic Report, released Monday.
Six regions, namely Hokuriku, Kanto-Koshinetsu, Tokai, Kinki, Chugoku, and Kyushu-Okinawa, reported that their economy had been expanding or expanding moderately.
At the same time, Hokkaido, Tohoku, and Shikoku noted that the economy had continued to recover moderately.
The greenback has climbed to around Y110.840 against the Japanese Yen Monday, from an early low of Y110.302.
Overall bank lending in Japan was up 2.2 percent on year in June, the Bank of Japan said on Monday – coming in at 524.847 trillion yen. That follows the 2.0 percent gain in May.
Japan had a current account surplus of 1,938.3 billion yen in May, the Ministry of Finance said on Monday. That topped expectations for a surplus of 1,266.0 billion yen and was up from 1,845.1 billion yen in April.
A measure of peoples’ assessment of the Japanese economy improved in June, in line with expectations, survey figures from the Cabinet Office showed Monday. The current index of Economy Watchers’ survey rose to 48.1 in June from 47.1 in May.
by RTTNews Staff Writer
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