Dollar Continues Slide Ahead of Economic Data (UUP)
The dollar is lower against most major currencies Tuesday, as looming economic data from the United States added to worries about a global slowdown. The PowerShares US Dollar Index (NYSE: UUP) is down 0.38% this morning, to $23.87.
Markets are waiting for a report on U.S. producer price and housing starts in July, as well as the Federal Reserve's data on industrial production, all due later on Tuesday. The new data should shed further light on the state of recovery for the United States.
"We wouldn't expect markets to make too much headway dramatically in either direction," said Graham Secker, European equity strategist at Morgan Stanley told Reuters. "We're in a holding pattern until we get a breakout in the economic data."
According to a Reuters report, "The influential German ZEW report showed [earlier on Tuesday that] analyst and investor sentiment fell in August to its lowest level since April 2009 on concerns that a faltering global economic recovery would hit Europe's largest economy."
The Euro is trading at $1.289, while the Japanese Yen is trading at 85.54. The dollar has recently been hovering around 15-year lows against the Yen.
The Reuters report notes that "Traders said it is only matter of time before the greenback falls past 85.00 yen and threatens to test last week's milestone due to a general bearishness toward the dollar."
