The dollar is little changed versus its major rivals on Monday. The start of the trading week has seen little economic data that would sway investors in any one direction. Investors continue to monitor the political situation in Greece as the country awaits a second round of elections, which is due to take place on June 17th. Spain also continues to be a concern, following the statements made today by the country's economy minister.
Leaders of the G8 nations on Saturday said they support Greece remaining in the Eurozone, while welcoming the ongoing discussion in Europe on how to generate growth alongside a firm commitment on fiscal consolidation.
"We agree on the importance of a strong and cohesive Eurozone for global stability and recovery, and we affirm our interest in Greece remaining in the Eurozone while respecting its commitments," the leaders said in a statement after the conclusion of the summit.
Spain may see another economic contraction in the second quarter of this year, Economy Minister Luis De Guindos reportedly said Monday. The gross domestic product shrank 0.3 percent quarter-on-quarter in the first quarter, pushing the economy into a technical recession after 0.3 percent slump in economic activity in the fourth quarter of 2011.
The minister also denied that Spain needs any kind of external aid for its banking sector. Last week, Moody's downgraded 16 Spanish banks, citing rising loan defaults and restricted funding access.
The greenback extended Friday evening's losses early Monday morning and briefly reached nearly a one-week low of $1.2812. The U.S. currency has since edged back to around $1.2780.
Eurozone construction output rebounded sharply in March, the latest figures from Eurostat revealed Monday. Construction output jumped 12.4 percent month-on-month in March, recovering from a 10.4 percent slump in February and 0.5 percent fall in January.
A leading indicator of French economic activity continued to rise for a second month in March, suggesting that the risk of an economic contraction may be decreasing in the near-term. The Conference Board said Monday that the leading economic index rose 0.4 percent month-on-month in March, following a revised 0.6 percent increase in February and a flat reading in January.
The dollar has traded basically flat in comparison to the pound sterling on Monday, hovering around $1.58.
Household finances in the UK deteriorated at the fastest pace in four months in May, a survey by Markit Economics showed Monday. The headline Household Finance Index posted 36.6 in May, down from 37.0 in the previous month.
The buck has rebounded from Friday's 3-month low of Y78.966 versus the Japanese Yen on Monday, back to around Y79.300.
Japanese all industry activity declined for the third consecutive month in March, largely reflecting contraction in the construction sector, data from the Ministry of Economy, Trade and Industry showed Monday. The all industry activity index fell 0.3 percent month-on-month, faster than the 0.1 percent decrease seen in the previous month. Economists were forecasting a 0.1 percent fall.
Japan's leading index improved in March, but at a slower than initially estimated pace, final data published by the Cabinet Office revealed Monday. The leading index rose to 96.4 in March from 96.1 in February. The reading for March was revised down from 96.6.
by RTT Staff Writer
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