The dollar rebounded from nearly a week long decline at the end of the previous trading week and has continued those efforts on Monday. The currency’s weakness for the majority of the previous week was caused by investor fears that the Federal Reserve would soon begin tapering its stimulus measures.
There has been little news to drive the direction of trading Monday, but investor will be watching for the release of a number of important pieces of economic data later this week. Among the highlights will be U.S. retail sales on Tuesday, U.S. industrial production on Thursday and U.S. housing starts on Friday.
The dollar dropped to a month and a half low of $1.3400 against the Euro on August 7th, but has climbed back to around $1.3300 on Monday.
Employment in the German manufacturing sector increased slightly from last year in June, preliminary data released by the Federal Statistical Office showed Monday. The number of persons employed in goods producing units, with fifty or more staff, grew 0.5 percent on an annual basis to around 5.2 million in June.
France’s current account deficit narrowed in June from a month earlier, data released by the Bank of France revealed Monday. The shortfall on current account fell to EUR 1.4 billion in June from EUR 3.5 billion in May. The deficit on goods account fell to EUR 3.9 billion from EUR 5.9 billion in the previous month.
The pace of contraction in Greece’s gross domestic product slowed in the second quarter of 2013, preliminary data from the Hellenic Statistical Authority showed Monday. The non-seasonally adjusted GDP decreased 4.6 percent year-on-year in the second quarter following a 5.6 percent contraction in the first quarter. The pace of decline in GDP has slowed for a third consecutive quarter. The economy is now in its sixth year of recession.
The greenback also fell to a month and a half low of $1.5574 against the pound sterling on August 7th, but has risen back to around $1.5480 on Monday.
British employers are upbeat about hiring new staff in the coming months, reports said Monday, citing a survey by the Chartered Institute of Personnel and Development (CIPD).
The net employment balance, which measures the difference between the proportions of employers who expect to increase staff levels over those who expect to decrease staff levels, increased to +14 in the three months to August from +9 in March-May.
The buck fell to a low of Y95.813 against the Japanese Yen on August 8th, but has bounced back to around Y96.515 on Monday.
Japan’s gross domestic product added just 0.6 percent in the second quarter of 2013 compared to the previous three months, the Cabinet Office said in Monday’s preliminary report. The headline figure missed forecasts for an increase of 0.9 percent, which would have been unchanged from the first quarter.
Japan’s industrial production declined 3.1 percent in June from a month ago, final data from the Ministry of Economy, Trade and Industry showed Monday. The monthly rate was revised from the previous estimate of 3.3 percent decrease.