The dollar snapped a five-day
winning streak against the euro on speculation the currency's recent gains are
too fast to be sustained.
The greenback has rallied 4.3% versus the euro this month on speculation the U.S. economic slowdown is spreading to Europe and as commodity prices have tumbled.
Germany's
economy, the largest in the 15-nation region that uses the euro, probably
contracted in the second quarter for the first time in almost four years,
according to the median forecast of 41 economists. The government is due to
report the data on Aug. 14.
EUR/USDprinted lows around $1.4820, where bids helped
the rate to recover to $1.4960. Later rate set stable around $1.4870/$1.4930.
GBP/USD printed
lows on $1.8967 before rebounded to $1.9080 after stronger-then-expected UK CPI
report. But rate failed to keep bullish momentum and retreated to $1.8945/50.
USD/JPY again
tested strong resistance area between the Y110.35/40 levels with offers capped
the rally and dollar retreated to Y109.20.
InEuropeUKlabormarketreportwillbethemajorevent(at08:30
GMT). At 09:00 GMT EU Industrial production report is
due to come. At 09:30 GMT attention will be on BoE quarterly inflation letter,
that may weight on МРС’s rates prospects.
At 12:30 GMT focus will be on US data, including Retail sales
numbers and Business inventories. Analysts predict sales rose 0.1% in June
after +0.5% month earlier. At 14:35 GMT US energy department will release
oil stocks figures