The US dollar showed mixed trading in early New York deals on Monday ahead of this week's key risk-events including the U.S. Federal Reserve meeting.
Investors remain hopeful ahead of the two-day policy meeting of the Federal Reserve. Fed Chief Ben Bernanke is expected to address some investor concerns after the meeting.
Bernanke would explain the issue of scaling back Fed's asset purchase program. Market participants are expecting the Fed would withdraw stimulus only after the economy gather sustainable momentum.
In economic news, conditions for New York manufacturers improved modestly in the month of June, according to a report released by the Federal Reserve Bank of New York today, with the index of activity in the sector climbing into positive territory.
The New York Fed said its general business conditions index rose to a positive 7.8 in June from a negative 1.4 in May, with a positive reading indicating an increase in regional manufacturing activity. Economists had expected to climb to a positive 0.5.
Eurozone's trade in goods with the rest of the world resulted in a surplus in April, which was lower than a month earlier, data from Eurostat revealed Monday.
The trade surplus fell to EUR 14.9 billion in April from EUR 22.5 billion in March. A year earlier, the surplus amounted to EUR 3.3 billion.
Exports grew 9 percent year-on-year in April, following a flat result in March. Imports rose 1 percent annually, recovering marginally from 10 percent slump in the previous month.
Germany's economic activity will pick up strongly in the second quarter, the Bundesbank said in its monthly report. But the bank forecast the momentum to slowdown in summer.
Employment in the German manufacturing sector increased modestly in April, preliminary data released by the Federal Statistical Office showed.
The yen fell in the morning on expectations of a dovish Fed, which will signal it is in no hurry to tighten policy. Besides, Japan PM Abe's Ally Yamaguchi said the central bank should prepare more easing steps also erased yen's corrective advantages.
The dollar fell to 1.5737 against the pound around 8:50 am ET, its weakest level since February 11.
The greenback traded range-bound against the rest of majors, with the EUR/USD moving between 1.3317-1.3355 and the USD/CHF trading between 0.92 and 0.9250.
The dollar also traded in a range of 95.11 and 94.06 against the yen in most of today's deals.
Looking ahead, the National Association of Home Builders is scheduled to release its housing market index for June at 10:00 am ET. Economists expect the index to rise to 45 from 44 in May.
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Forex News
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.