Forexpros – The dollar traded steady to higher against most major global currencies on Monday after Japan reported preliminary second-quarter gross domestic product numbers that fell short of expectations.

Talk weak economic indicators around the world will lead to central bank stimulus measures tempered the dollar’s gains, evening weakening the greenback against some currencies.

In Asian trading on Monday, EUR/USD was up 0.04% at 1.2295.

Earlier Monday, Japan reported its gross domestic product grew less than expected in the second quarter, expanding 0.3% according to preliminary figures, below market forecasts for 0.6% growth and well below the first quarter’s rate of 1.3%.

The news sent the dollar gaining as investors flocked to the greenback for safety.

However, a string of weak economic indicators from around the world continued to fuel sentiments that central banks, including the U.S. Federal Reserve, will move to stimulate their respective economies, which would weaken paper currencies, the dollar especially.

China reported last week that its trade surplus narrowed unexpectedly in July, dropping to USD25.1 billion from a USD31.7 billion surplus.

Economists were expecting a USD35.1 billion surplus.

Meanwhile in Europe, the European Central Bank on Thursday trimmed its forecast for economic growth to 0.6% in 2013, down from 1% previously.

The ECB also forecast the economy to contract 0.3% this year, slightly worse than its previous forecast for a 0.2% contraction.

Federal Reserve officials have said they cannot rule out rolling out a new round of asset purchases from banks, a stimulus tool known as quantitative easing that pumps liquidity into the economy to spur recovery, weakening the greenback in the process.

European Central Bank President Mario Draghi has said monetary policy officials will do whatever it takes to bolster the economy in Europe as well.

The greenback, meanwhile, was up against the pound, with GBP/USD trading down 0.06% at 1.5679.

The dollar was up against the yen, with USD/JPY trading up 0.01% at 78.27, and down against the Swiss franc, with USD/CHF trading down 0.02% at 0.9772.

The dollar was mixed against its cousins in Canada, Australia and New Zealand, with USD/CAD down 0.01% at 0.9910, AUD/USD down 0.15% at 1.0560 and NZD/USD down 0.18% at 0.8118.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.01% at 82.63.

Later this week on Tuesday, the eurozone will release data on industrial production as well as preliminary data on second quarter GDP, while Germany and France will unveil individual GDP reports.

Also on Tuesday, the ZEW Centre for Economic Research will publish a report on economic sentiment in Germany and throughout the single currency bloc.

In the U.S. that day, data on retail sales and producer price inflation will publish, followed by data on business inventories.

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