Forexpros – The U.S. dollar was trading in narrow ranges against its major counterparts on Monday, after last Friday’s soft U.S. data saw market participants re-examine expectations that the Federal Reserve will move away from an easing policy.
During European morning trade, the dollar was slightly higher against the euro, with EUR/USD slipping 0.12% to hit 1.3157.
The dollar weakened on Friday, after U.S. industrial production numbers came in unexpectedly flat in February, while the University of Michigan’s consumer confidence index also disappointed, coming in at 74.3, below expectations for a reading of 75.7.
Also Friday, official data showed that U.S. consumer price inflation rose 0.4% in February, in line with expectations, fueled largely by pricier gasoline, but the data gave little indication that underlying inflation is building.
Meanwhile, the euro came under pressure after the chief executive of investment fund Pimco, Mohamed El-Erian, said Portugal will need a second bailout.
The greenback edged higher against the pound, with GBP/USD dipping 0.08% to hit 1.5831.
The greenback pulled back from an 11-month high against the yen, with USD/JPY shedding 0.47% to hit 83.03, but edged higher against the Swiss franc, with USD/CHF easing up 0.12% to hit 0.9165.
Elsewhere, the greenback was steady against its Canadian, Australian and New Zealand cousins, with USD/CAD inching up 0.04% to hit 0.9920, AUD/USD dipping 0.01% to hit 1.0588 and NZD/USD inching up 0.10% to hit 0.8250.
Earlier Monday, Reserve Bank of Australia Governor Glenn Stevens said that the euro zone’s debt problems were still a risk to the global economy, but remained upbeat on the outlook for China and the rest of Asia.
Stevens also said Australia’s overall recent economic performance was “not too bad” despite the pressures of the strong domestic currency, but said that only increased productivity could boost economic growth.
In New Zealand, the Westpac index of consumer sentiment rose to 102.4 in the first quarter from 101.3 in the last three months of 2011.
Consumer confidence remained subdued in the first quarter amid lingering concerns over the outlook for the economy and price increases the report said.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, edged up 0.04% to hit 80.11.
Later in the day, the U.S. National Association of Home Builders was to publish a report on home sales.
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