By Barbara Kollmeyer, MarketWatch
MADRID (MarketWatch) — The dollar gives up some ground on Tuesday ahead of Wall Street’s open as investors geared up for economic data from the U.S. expected to take center stage.
The ICE dollar index DXY -0.14% , which measures the greenback’s performance against a basket of six currencies, slipped to 79.435 from 79.573 in North American trade late Monday.
The WSJ dollar index XX:BUXX -0.24% , which tracks the U.S. unit against a slightly larger basket, traded at 69.34 from late Monday’s 69.51.The euro EURUSD +0.2591% , which touched its lowest level since Sept. 12 on Monday, edged up to $1.2958 from $1.2923 late the prior day.
“The deteriorating trend in key economic indicators remains the constant factor for markets which lack ‘new news,’” said Kit Juckes, global head of FX Strategy at Société Générale, in a note to investors.
“So yesterday’s [German] Ifo did nothing to alter the sense that the global, correlated manufacturing slowdown is on-going. We may spend all day deliberating about [quantitative easing] and fiscal cliff in the U.S., leveraging the [European Stability Mechanism] in Europe, but in the meantime, what we lack is any confidence about where stronger growth will come from,” said Juckes.
Data on tap in the U.S. include the S&P/Case-Shiller home-price index for July due at 9 a.m. Eastern time and then at 10 a.m. Eastern, the September consumer-confidence index and the Federal Housing Finance Agency home-price index for July. Juckes said at the margin, U.S. data “should be friendly enough,” as quantitative easing by the Federal Reserve helps housing, which in turn boosts consumer confidence.
Investors are also staying tuned to the sovereign-debt picture in Europe, awaiting news on a potential bailout from Spain, the expected release of the country’s budget plan and the results of detailed stress tests for Spanish banks. See: Spain: What investors need to know.
European stocks were sticking to tight ranges, while U.S. stock futures pointed to a slightly firmer start for Wall Street. Commodities were also slightly higher.
Within other currency crosses, the British pound GBPUSD +0.25% rose to $1.6244 from $1.6211 in North America late Monday.
The Australian dollar AUDUSD +0.33% traded at $1.0447 from $1.0423 late Monday.
Against the Japanese yen, the dollar USDJPY -0.17% changed hands at ¥77.76, down from ¥77.88 Monday.
Barbara Kollmeyer is an editor for MarketWatch in Madrid.
