“The dollar snapped a two-day decline versus the euro before a U.S. report that economists said will show the drop in house prices slowed, undermining the case for more stimulus from theFederal Reserve.
The U.S. currency strengthened from the lowest level this month against its European counterpart before another report forecast to show U.S. consumer confidence stayed near the highest level in a year. The Dollar Index dropped 0.9 percent over the past two days amid speculation the Federal Reserve will start a third round of quantitative easing, or QE3. The pound pared an advance after a report showed U.K. retailers expect conditions to worsen next month.
“The dollar-negative mood will fade,” said Geoffrey Kendrick, head of European currency strategy at Nomura International Plc in London. “If today’s data is better than expected people might start to think there’s no need for QE3, which could be dollar positive. I think euro-dollar is a good sell here.”
The dollar was unchanged at $1.3359 per euro at 6:47 a.m. New York time, after depreciating to $1.3386, the weakest level since Feb. 29. The yen was little changed at 82.83 per dollar. The euro traded at 110.66 yen, after gaining 1.6 percent over the past two days….”
If you enjoy the content at iBankCoin, please follow us on Twitter
