The dollar rose against the euro and yen on speculation a rebound in
U.S. retail sales will support the Federal Reserve's case for raising
interest rates.
The currency gained for a third time in four days as a government
report will probably show consumers increased spending in May using tax
rebates. It has risen 2.2 percent against the euro this week as Federal
Reserve Chairman Ben S. Bernanke said the risk of a deeper economic
slowdown is receding. The Australian dollar fell to a one-month low
after the economy unexpectedly lost jobs for the first time in 19
months. The U.S. currency may also be supported by speculation that
finance ministers from the Group of Eight countries will make comments
discouraging the currency's decline at two days of meetings starting in
Osaka tomorrow.Losses in the euro may be limited by speculation ECB
council members Guy Quaden and Axel Weber will highlight inflation
risks, raising expectation of higher interest rates.
EUR/USD fell from $1.5560 to $1.5460.
GBP/USD followed euro dropping from $1.9640 to $1.9560/70.
USD/JPY could firm from Y106.70 to Y107.35.
US data starts at 1230GMT with the weekly jobless claims,
theimport/export price index for May and retail & food sales for
May. Initial claims are expected to rise 13,000 to 370,000 in the June
7 week, while retail sales are expected to rise 0.5% in May on a
modestslowdown in industry light truck sales, a rebound in car sales
and anexpected 0.6% rise in sales outside motor vehicles. At 1400GMT,
US business inventories are expected to rise 0.3% on an already
reported flat reading for factory inventories and a 1.3% jump in
wholesale inventories.