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Dollar Slightly Weaker Versus Majors Monday Morning [EUR/USD]
4/28/2008 7:09:22 AM The dollar was slightly weaker versus other major currencies Monday morning in New York, easing a bit to the euro and sterling while levelling off against the yen. With no major economic readings due out Monday, investors were looking ahead to Wednesday`s interest rate decision from the Federal Reserve.

While Monday should be a quiet day on the economic front, later this week traders will be treated to figures on consumer confidence, Chicago PMI, Advanced Q1 GDP, ADP employment, ISM manufacturing and U.S. Non-farm payrolls.

The dollar drifted slightly lower versus the euro, pulling away from Friday`s 3-week high of 1.5554 to trade at 1.5692. German consumer confidence improved significantly in April, raising the forecast for May, results of a survey showed.

Monday, the Nuremberg-based GfK said its forward-looking consumer climate indicator is forecasting a value of 5.9 points for May, up from a revised 4.8 points in April. Initially, the April reading was forecasted at 4.6. Economists were looking for a reading of 4.5 for May.

In its economic forecast report, the European Commission revised up its euro area inflation forecast to 3.2 percent from 2.6 and to 2.2 percent from 2 percent, respectively.

The dollar saw little movement against the yen Monday morning, staying near last week`s 2-month low. The dollar fetched 104.50 approaching 7 am ET, down slightly from 104.81 last night.

Retail sales in Japan rose 1.1% year-on-year in March, according to data released by the Ministry of Economy, Trade and Industry Monday. Retail sales were boosted by higher spending on fuel due to higher gasoline prices. This was the eighth consecutive month that rising retail sales.

Later in the week, the Bank of Japan is expected to maintain its 0.5 percent key interest rates.

The dollar eased to the sterling Monday morning, slipping to 1.99 from an early level near 1.9780. There is little economic data set from release from the UK, leaving traders to look ahead to Tuesday, when BOE Governor Mervyn King will testify before Parliament. Copyright © 2007 RTTNews.com. All Rights Reserved.