The dollar rose against the euro for the first time in three days as Federal
Reserve Chairman Ben S. Bernanke said the bank may extend securities dealers'
access to direct loans into 2009.
The U.S.
currency erased losses that came yesterday on concern Fannie Mae and
Freddie Mac, the two largest U.S.
providers of home financing, may need to raise additional capital. China's yuan
remained higher against the dollar after the Group of Eight nations signaled they're
seeking gains in currencies of countries with trade surpluses.
Bernanke said on June 3 that he's ``attentive'' to the effect of the dollar's
decline on inflation. He and U.S. Treasury Secretary Henry Paulson are
scheduled to testify before Congress on July 10.
Pending home resales in the U.S.
fell 4.7 percent in May after a revised 7.1% increase in the prior month, the
National Association of Realtors reported today in Washington. The median forecast of 38
economists for a decrease of 3%.
EUR/USD tested $1.5670/80 zone
of bids before rallying to $1.5740. Meanwhile later rate came under pressure again,
backing off to $1.5630.
GBP/USD fell from $1.9790
amid position-adjustment after it failed to break above $1.9800. As a result
pound slid to $1.9660.
USD/JPY printed lows at Y106.20
before rose to Y107.50.
There are no key economic news from US. In Europe the attention will be on UK trade balance at 08:30 GMT and EU Q1 GDP data revision at 09:00 GMT. As expected, economy growth was unchanged at +0.8% m/m and +2.2% y/y.