The dollar traded near a two-week high against the euro on signs the economy is weathering
the housing slump and record gasoline prices.
The pound fell
to a two-week low against the dollar after a report showed British consumer
confidence dropped in May to a four-year low. Еconomists predicted the Bank of
England will keep borrowing costs unchanged Thursday. The dollar traded within
a cent of a two-week high against the euro as reports showed unexpected signs of
resilience in the world's largest economy.
The Institute for Supply
Management's index of non- manufacturing businesses decreased to 51.7 last
month from 52 in
April. The median forecast ofeconomists
was for a drop to 51. Company Hiring U.S. companies added 40,000 jobs, followed
a revised gain of 13,000 for the prior month that was more than previously
estimated, ADP Employer Services said. The median forecast of economists was
for a reduction of 30,000.
The European Central Bank will hold
its main refinancing rate at a six-year high of 4% Thursday, all surveyed
economists predicted. The ECB has kept the rate at that level since June 2007.
EUR/USD held
within the $1.5420/80 range after Tuesday’s sell-off.
GBP/USD continued
to retreat from $1.9630 to $1.9520.
USD/JPY initially
fell from Y105.30 to Y104.50. Later rate rebounded to Y105.30.
Futures on the Chicago Board of Trade show a 63 percent chance the Fed will raise the 2 percent target rate for overnight lending between banks by at least a quarter-percentage point by December, compared with 59 percent odds a month ago.