The dollar is trading basically flat against its major European competitors at the start of the new trading week, but is down slightly against the Japanese Yen. There has been little economic data to drive the direction of trade Monday, but there are a number of important reports due out Tuesday. Investors will also be watching for the final reading on U.S. GDP for the first quarter on Wednesday.
Debt problems in member states of Eurozone should not stop the European Central Bank from lifting interest rates, Governing Council member Jens Weidmann said in an interview published on Sunday.
Neither states nor the private sector should assume that the current low interest rate environment will continue permanently, he told Germany’s Sueddeutsche Zeitung.
Weidmann who also heads Bundesbank said the restrictions on the bond buying programme of ECB were ‘a step in the right direction.’ But it will not solve core issues with the policy – selectively purchasing the debt with poor ratings.
The dollar has been moving in a narrow range around the $1.3100 level against the Euro since the start of trading Monday.
Germany’s business confidence improved slightly to 105.9 in June from 105.7 in May, reports said citing a survey from the Ifo institute on Monday. The reading came in line with economists’ expectations.
Confidence among Italian households increased to a 5-month high in June, as their perception of personal finances and the general economic condition turned more upbeat, data released by statistical office Istat showed Monday.
The headline consumer confidence index rose markedly to 95.7 in June from 86.4 in May, which was revised up from 85.9. The latest figure was the highest since March 2012, when the reading was 96.8.
U.K. lenders expect a significant decrease in funding costs over the next three months, continuing the downward trend seen during three months to end-May, the Bank Liabilities Survey from Bank of England showed Monday.
Total funding volumes were forecast to drop further in the coming quarter after a fall in three months to May. The survey was conducted between May 10 and May 31.
The greenback rose to an early high of $1.5342 against the pound sterling Monday, but has since pulled back to around $1.5400.
The buck climbed to a 2-week high of Y98.692 early Monday, but has since dropped to around Y97.650.