The dollar is gaining ground against all of its major competitors on Monday. Equity markets are taking a bit of a breather at the start of the new trading week, following the rally at the end of the previous week.
European Central Bank President Mario Draghi reiterated comments he made last week after the ECB cut rates that the bank is ready to act again if necessary. Draghi made the comments today during a speech in Rome.
Italy's statistical office lowered its economic outlook for 2013 citing reduction in domestic demand. In a report released on Monday, Istat said the economy will contract 1.4 percent in real terms in 2013, revised down sharply from a 0.5 percent contraction estimated in November. But Istat sees a gradual recovery next year.
The decline in domestic demand will only be partially offset by the positive contribution of external demand in 2013. Moreover, total investment is forecast to fall due to tight credit conditions and persistent negative economic sentiment.
French Finance Minister Pierre Moscovici has indicated that the era of austerity in the country is ending and the government is now focusing more on growth. In an interview to Europe 1 radio, he said "we are seeing an end of the dogma of austerity."
The European Commission last week gave France two more years to reach its deficit targets as the economic recovery is expected to be delayed.
According to the latest forecasts by the Commission, the French economy is seen contracting 0.1 percent this year, in contrast to its earlier prediction of 0.1 percent expansion. In 2014, the economy is forecast to grow 1.1 percent, which is weaker than the February prediction of 1.2 percent growth.
The dollar dipped to an early low of $1.3140 against the Euro on Monday, but has since climbed to around $1.3060.
Eurozone's retail sales declined further in March as domestic demand continued to be dragged by the ongoing economic crisis and the austerity policies pursued by many member-countries, raising concerns that the currency bloc would remain in recession in the first half.
Retail sales dropped 0.1 percent sequentially, a tad slower than the 0.2 percent fall seen in February, the statistical office Eurostat said Monday. The latest fall was in line with economists' forecast.
Investor confidence in the Eurozone improved in May after deteriorating in the previous two months, data released by the think-tank Sentix showed Monday. The investor confidence index rose to -15.6 in May from -17.3 in April. The latest figure was, however, far below the expected level of 15. In March, the reading was -10.6.
Eurozone private sector continued to contract in April, but at a less steep pace than estimated earlier, final results of a survey by Markit Economics showed Monday. The composite output index, that measures performance of both manufacturing and services, rose to 46.9 from 46.5 in March. The flash reading was the same as that of March.
Germany's private sector contracted at a slower than estimated pace in April, final data from Markit Economics showed Monday. The composite Purchasing Managers' Index fell to 49.2 in April from 50.6 in March, but above the initial estimate of 48.8.
France's private sector economy contracted further in April, but at a slower rate than initially estimated, final data released by Markit Economics and CDAF showed Monday. The composite output index increased to a four-month high of 44.3 in April from 41.9 in March, which was the lowest reading in forty-nine months. The initial estimates were for a reading of 44.2 in April.
Spain's unemployment decreased further in April, and reached below the five-million mark, indicating that the recession-stricken economy is showing signs of recovery, data released by the Labor Ministry showed Monday. The number of unemployed persons decreased by 45,060, or 0.91 percent, from the previous month to around 4.99 million in April.
The greenback reached an early low of $1.5597 against the pound sterling Monday, but has since risen to around $1.5540.
The U.K. markets are close Monday for a public holiday.
The buck has extended its recent gains against the Japanese Yen to a third consecutive session on Monday, reaching over a 1-week high of Y99.443.
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Market Analysis
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.