The dollar rose against the euro and yen before a report that may show
a rebound in U.S. retail sales, giving the Federal Reserve more reason
to raise interest rates to curb inflation.
The U.S. currency gained for a third time in four days before the
Commerce Department report that will probably show consumers increased
spending in May using tax rebates.
U.S. retail sales probably increased 0.5 percent in May following a 0.2
percent drop the prior month. The Commerce Department is scheduled to release the report due
at 1230 GMT.
``The market's expecting a relatively good report'' on retail sales,
said Paul Robson, a currency strategist in London at Royal Bank of
Scotland Group Plc, the U.K.'s second-biggest lender. ``The dollar may
be picking up as interest rates in the U.S. are quite low, which may
help the market have more confidence that the Fed will tighten policy
more than the European Central Bank.''
EUR/USD fell from $1.5560 to $1.5400.Bids $1.5380/85, $1.5350/40, offers $1.5455, $1.5490/00
GBP/USD followed euro dropping to $1.9460. Bids $1.9460/50, $1.9420/10. Offers $1.9550, $1.9580.
USD/JPY firmed from Y107.30 to Y107.75. Offers Y107.75/00,, bids Y107.00
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.