The U.S. dollar is broadly weaker on Monday after disappointing U.S. home sales data on Friday raised concern about whether the Federal Reserve could begin tapering in September.
The U.S. housing sector recovery is key so any weakness in this could be a sign that the U.S. is not ready for a reduction in stimulus measures.
Stimulus usually tends to weaken the dollar, so any speculation of no Fed tapering will reduce demand for the U.S. currency.
U.S. durable goods order due later today will be in focus. Economists forecasts as for a drop, which would be the first decline in four months.
Investors preferred to stay on the sidelines in the Asian session today, allowing major currency pairs to consolidate.
USDJPY remained near Friday’s levels, when the pair fell to 98.38 yen after the weak U.S. housing data.
A weaker dollar gave the euro a chance to rise. EURUSD briefly broke above the key $1.34 level on Friday and subsequently consolidated in a range between $1.3375 and $1.3391.
Sterling is steady but failed to keep the highs reached after the upbeat U.K. GDP data last week.
GBPUSD traded between $1.5560 and $1.5583 in the Asian session today.
Trading in the European session is expected to remain quiet since the U.K markets are closed today for a public holiday. Also there are no key economic data releases.Publication source