RTTN: Dollar Rally Perseveres Ahead Of Economic Deluge
(RTTNews) - The dollar consolidated its recent gains Monday morning in New York, rising sharply versus the sterling and staying near a 6-month peak against the slumping euro. Speculation that that Europe is lagging behind the global economic recovery has give the dollar and yen a boost in recent weeks.
A calendar full of pivotal economic data will keep traders on their toes this week, hoping for more clues about the sustainability of the solid growth figures from the US reported last week.
The labor situation remains murky, but the Labor Department's January non-farm payrolls report, the weekly jobless claims report and the ADP private non-farm employment survey are among reports that will shed some light on how the labor market is panning out.
This morning, the Bureau of Economic Analysis is due to release its personal income & outlays report for January. Economists estimate the report, which is due out at 8:30 AM ET, to show that personal income and personal spending climbed 0.3% each in the month.
The Commerce Department's construction spending report to be released at 10 AM ET is expected to show a 0.5% decline in spending for December.
The dollar extended its dramatic advance to its highest level since last summer versus the euro over the weekend, rising to 1.3852 before leveling off to 1.3900 this morning.
Eurozone's manufacturing Purchasing Managers' Index stood at a seasonally adjusted 52.4 in January from 51.6 in December, the Markit Economics said on Monday. This was the highest reading for two years.
The buck rose to a monthly high of 1.5849 versus the sterling, coming close to a 4-month high of 1.5831 before tailing off.
Overall manufacturing sector activity in the U.K. strengthened in January on strong new orders and production, a closely watched survey revealed Monday.
The CIPS/Markit Purchasing Managers' Index for manufacturing improved to 56.7 in January from an upwardly revised figure of 54.6 in December, a report released by the Markit Economics showed.
Also, the dollar rose to a fresh monthly high above C$1.0700 versus its Canadian counterpart.
The dollar held its ground versus the yen, staying above Y90 for a third day.
