MW: Dollar trims losses ahead of durable-goods data
Euro can't sustain $1.30 mark; sterling keys on interest-rate faceoff
LONDON (MarketWatch) -- The dollar traded flat to lower Wednesday, trimming an earlier loss against the euro as investors awaited U.S. durable-goods data for a further clue as to the strength of an uncertain recovery in the largest global economy.
The dollar index (DXY 82.13, -0.06, -0.07%) , which tracks the greenback against a basket of major currencies, was little changed at 82.118 versus 82.200 late Tuesday.
The euro (CUR_EURUSD 1.2991, -0.0010, -0.0769%) once again failed to maintain a push above the $1.30 level, slipping back to $1.2994 in recent action to leave it little changed from $1.2989 in North American trading late Tuesday. Read Forex Files column on the euro and the debt crisis.
Against Japan's yen, the euro (CUR_EURYEN 114.0300, -0.2400, -0.2100%) erased an early gain to stand at ¥113.95, off slightly from ¥114.05 late Tuesday.
The dollar also saw a gain against the yen (CUR_USDYEN 87.7600, -0.1000, -0.1138%) erased, leaving the U.S. unit at ¥87.80, virtually unchanged from ¥87.82 late Tuesday.
Jane Foley, research director at Forex.com, cited "underlying doubts about the global economic backdrop."
"The volatility of this series is legendary, and markets need 'dull' data for the improved tone in 'risk' ... to continue," said Kit Juckes, head of foreign-exchange strategy at Societe Generale, in a research note.
U.S. durable-goods data for June are set for release at 8:30 a.m. Eastern. Later Wednesday, the Federal Reserve will release its latest Beige Book report on regional economic conditions.
The British pound (CUR_GBPUSD 1.5575, -0.0019, -0.1218%) traded at $1.5590, up 0.1%. The currency showed little reaction to testimony by Bank of England Governor Mervyn King and other central bankers, including Andrew Sentence, before a parliamentary committee. Read about the testimony.
King said the economy still needs monetary stimulus, though the central bank could move to either add or scale back the degree of stimulus in the future. Meanwhile, Sentance made clear he sees the recent jump in second-quarter gross domestic product as vindication of his lone dissents in June and July in favor of implementing hikes in the bank's key lending rate of a quarter of a percentage point.
Howard Archer, chief U.K. economist at IHS Global Insight, said he believes the Bank of England will "choose to remain in 'wait-and-see' mode so they can monitor how well U.K. economic activity holds up after the second quarter spike in activity, how sticky inflation remains and whether or not there is a significant, sustained spike up in inflation expectations."
Meanwhile, the Australian dollar (CUR_AUDUSD 0.8947, -0.0061, -0.6770%) fell against its U.S. counterpart.
Australia's consumer price figures for the second quarter rose less than economists had expected, trimming the likelihood for another central-bank rate hike.
The Australian Bureau of Statistics reported the increase in the consumer price index at 0.6%, smaller than the 1% expected. It also said the gauge was up 3.1% from the year-earlier second quarter, less than the 3.4% rise expected. Read more on Australian price data.
The smaller-than-expected increase suggested that the Reserve Bank of Australia will keep its policy rate unchanged at 4.5% when it meets on Aug. 3.
