Dollar Holds Near 4-Month Low, Bets on Euro Rise
A gauge of the dollar hovered near a four-month low as investors await US retail sales and manufacturing data for further clues on the health of the world’s biggest economy.
The Bloomberg Dollar Spot Index was little changed on Monday, just shy of the four-month trough it hit on March 11. Concerns about an economic slowdown have wiped trillions of dollars from the US equities market, though Treasury Secretary Scott Bessent told NBC at the weekend such corrections were “healthy”
EUR/USD, which has gained nearly 5% this month on hopes for a fiscal spending revival in Germany, was flat at 1.0881
“We have moderated our bullish dollar call on the back of a potentially divergent fiscal policy trajectory in favor of Europe,” according to a note by Themistoklis Fiotakis at Barclays. Given that US economic data do not point to major slowdown, “a decisively deeper cutting cycle is a necessary condition for a meaningful turn in the dollar lower.”
USD/JPY up 0.2% at 148.89
NZD/USD up 0.1% to 0.5756; AUD/USD unchanged at 0.6324
GBP/USD, which has gained nearly 3% so far this month, was also flat
The Bank of England is set to hold fire on another cut on Thursday. That would leave its rate at 4.5% as it sticks to a gradual, once-a-quarter pace for reductions
Source : Bloomberg
