The dollar rose against the euro for the first time in three days as U.S. stock indexes advanced and crude oil prices fell. The dollar fell last week the most against the euro in two
months. The dollar remained higher versus the euro after an industry
report showed an unexpected increase in Americans signing contracts to
buy existing homes in April. The index of pending home resales rose 6.3
percent to 88.2, the highest in six months, following a 1 percent drop
in March, the National Association of Realtors said today. The median
forecast of 32 economists surveyed was for a 0.4 percent drop.The British pound rose to
a one-week high against the dollar after a government report showed
producer-price inflation accelerated in May to the fastest pace in two
decades. The Bank of England held the target lending rate at 5 percent
last week.
The yen dropped versus all of the major currencies after a
government report indicated Japan's longest postwar expansion may be
over.
EUR/USD fell from a high at $1.5840 to $1.5620.
GBP/USD firmed from a low at в $1.9670 to $1.9800, retreating later till $1.9700.
USD/JPY rose from Y104.50 to recent days high at Y106.30.
UK data at 0830GMT also sees April industrial production, which isexpected to be flat on the month and rise 0.1% y/y.
European data starts at 0600GMT with May wholesale prices from Germany.
This is followed at 0645GMT by French industry production for April and
Italian industrial production, also for April. At 1230GMT, the US
international trade gap is expected to widen to $59.5 billion, as
imported petroleum prices surged further. Canada international
merchandise trade for April is also due at the same time.