Dollar strength on morning session falied to extend gains
On Monday's session euro/dollar rebounded down to 1.40 as China's official said that China would have no plan to diversify and change reserve currency structure. On this back the U.S. dollar has gained a little against most major currencies, but as the European session started greenback lost its morning gains.
U.S. economic data reported on Friday showed a definite optimism. U.S. consumer expenditures rose in May first in the last tree months on the largest personal income increase in this year. Expenditure increase by 0.3% followed zero figure in April. U.S. personal incomes increased by 1.4% thanks to tax lowering and social payments in the framework of anticrisis measures of the president's administration and growth of savings volume in the U.S. to the 15-year high. Consumer confidence in June marked 4 month growth, denting hopes on recession bottom out. U.S. consumer sentiment index, calculated by Michigan university, reached in June the mark of 79.8, its high since February of 2008 against the forecasts of 69 and 68.7 in May.
On Friday the Bank of England published the report, warning over massive losses that British banks would bear, as a result of which the British economy would become more vulnerable. Efforts on stimulating the financial sector and massive funds provided by the British authorities have not produced yet any results that the government counted on. Economic reports continue pointing out that U.K. housing market has not reached its bottom. House prices in the U.K. much decreased in May. According to data from land cadastre agency the prices dropped by 0.2% on month-over-month basis and by 15.9% year-over-year basis.
Investors' profit taking and slightly falling risk appetite gave pressure on the Australian dollar at the end of the Asian session Monday, although the Aussie has held above the psychologically important figure at 0.80 U.S. dollar that in the condition of low market activity. The key event for the Aussie would be expected report from the Reserve Bank of Australia on private sector credit in May on Tuesday and May's retail sales data, published on Wednesday.
