News Column

Dollar Holds Near 3-Month Peak Against Euro Ahead Of ECB

June 3, 2014

BRUSSELS (Alliance News) - The dollar was little changed from a 3-month peak from the euro on Tuesday, as anemic euro zone inflation cemented expectations the European Central Bank will offer stimulus later this week.

Inflation in euro zone rose at an annual rate of just 0.5% in May from a year earlier, down from a 0.7% rate in April, Eurostat said this morning.

On Thursday, ECB President Mario Draghi is expected to announce a series of steps to boost the sluggish euro zone economy and fight deflation.

There was little reaction to data from the US showing new orders for factory goods rose for a third straight month in April.

New orders for manufactured goods increased 0.7%. March's orders were revised to show a 1.5% increase instead of the previously reported 0.9% rise.

The dollar edged a bit lower to USD1.3625 versus the euro after challenging a 3-month peak of USD1.3593 overnight.

Choppy dealing left the dollar little changed at USD1.6735 versus the sterling, near a monthly high.

The buck was also steady versus the yen at Y102.45. The yen held near a 4-month peak against the euro.

Looking closer at today's economic data, unemployment rate in the euro zone declined unexpectedly in April.

Nonetheless, unemployment remains at a high level as companies are still cautious over adding staff and meet rising orders with existing employees.

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Source: Alliance News

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