(MENAFN– ecpulse)
The U.S. dollar recovered some of its earlier losses on Monday before a report expected to show U.S. manufacturing signaled an expansion in June.
As of 14:00, the U.S. will release ISM manufacturing amid expectations of seeing a turn to expansion of 50.5 in June from the prior contraction of 49.5.
The data is predicted to follow a parade of upbeat data that will add to expectations the Fed will start scaling back stimulus at the end of this year.
Later in the week, the awaited non-farm payrolls will show the U.S. economy added 165,000 jobs last month from 175,000 in May while unemployment retreated to 7.5 percent from 7.6 percent, according to median forecasts.
The main vibes in the market are in favor of seeing a taper withdrawal to non-standard measures by the Fed despite trials from other officials whom clarified that the reduction is not withdrawal as the process of bond purchases may continue if the economy failed to show sustained progress.
The dollar index, which tracks the dollar movements versus a basket of major currencies, is currently hovering around 83.40 after rebounding from a low of 83.24.
Against the yen, the dollar soared to three-week high as the rise in Japanese Tankan index and the announcement by the BOJ that the economy will keep expanding until the second quarter of 2014 lowered safety demand on the yen.
The USDJPY is meanwhile showing advance for a third straight session to trade around 99.70 after hitting a high of 99.73, buoyed by the breach of 99.17 which represents Daily SMA 50.
The EURUSD is trading higher yet lost some of its gains as it slipped from a peak of 1.3059 to trade around 1.3025.
Reports today from the euro area showed a rise in European manufacturing to 16-mnth high at the last month of the second quarter as the PMI gauge rose to 48.8 from 48.3 in May.
Another reports signaled that unemployment rose to 12.1%, coming below expectations of 12.3%, from a revised of 12.0%, while CPI estimate for the year ended June rebounded for a second months to 1.6% from a prior of 1.4%.
Eyes will focus on ECB rate decision on Thursday, where Draghi said last week that the ECB is ready to act if needed but the banks efforts solely will not resolve crisis as governments have to continue with reforms.
Finally, the GBPUSD rebounded after four consecutive daily drops to trade around 1.5220 from an opening of 1.5198 after a report showing a pickup in U.K. manufacturing to 25-month high in June.
The Canadian Mark Carney is taking charge as the governor of the Bank of England amid improvement in the British economy.
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