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Dollar Mixed Following U.S. Retail Sales

The U.S. dollar came in mixed against its major counterparts in the European session on Monday, following the release of a data showing a modest growth in U.S. retail sales for January.

Data from the Commerce Department showed that retail sales rose by 0.2 percent in January after tumbling by a revised 1.6 percent in December.

Economists had expected retail sales to come in unchanged compared to the 1.2 percent slump originally reported for the previous month.

Excluding a steep drop in auto sales, retail sales climbed by 0.9 percent in January after plummeting by a revised 2.1 percent in December.

Ex-auto sales had been expected to increase by 0.3 percent compared to the 1.8 percent plunge originally reported for the previous month.

Investors focus on inflation data due tomorrow to assess the health of economy. The core CPI is expected to rise 0.2 percent from last month and 2.2 percent from last year.

The U.S. and China trade negotiations are also on focus, following media reports that a trade accord may be signed at the US-China summit meeting later this month.

The currency held steady against its major counterparts in the Asian session, barring the pound.

The greenback edged up to 1.0096 against the Swiss franc, from a 4-day low of 1.0070 hit at 5:00 pm ET. Next key resistance for the greenback is seen around the 1.02 level.

Following a 4-day decline to 1.1258 at 5:30 am ET, the greenback reversed direction against the euro with the pair trading at 1.1234. Should the dollar extends its upward trading, it is likely to seek resistance around the 1.10 level.

Preliminary data from the Federal Statistical Office showed that Germany's industrial production unexpectedly decreased in January and exports were unchanged, defying forecasts for a fall.

Industrial production decreased 0.8 percent month-on-month in January, while economists had predicted a 0.5 percent gain.

The greenback fell to 1.3060 against the pound, reversing from near a 3-week high of 1.2960 seen at 8:45 pm ET. On the downside, 1.33 is likely seen as the next support level for the greenback.

The greenback was lower at 111.11 against the Japanese yen, pulling away from a high of 111.31 set at 3:45 am ET. If the greenback falls further, 110.00 is possibly seen as its next support level.

Data from the Bank of Japan showed that Japan M2 money stock rose 2.4 percent on year in February - coming in at 1,010.1 trillion yen.

That was in line with expectations and up from the downwardly revised 2.3 percent in January.

The U.S. business inventories data for December is due at 10:00 am ET.

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