Solid U.S., Weak Eurozone Economy Aren’t Lifting Dollar or Weakening Euro, Says SocGen

1238 GMT – The bar for a growth-led U.S. dollar rally is quite high, as is the bar for a fall in the euro due to eurozone recession risks, leaving EUR/USD struggling for direction, Kit Juckes, rates strategist at Societe Generale Research, says in a note. The EUR/USD exchange rate is already priced for bad news, “which is indeed what we’re getting,” he says. Upcoming U.S. data will be the next focus for the dollar and the euro, including retail sales and industrial prodution on Wednesday, he says. EUR/USD trades steady at 1.0950. ([email protected])

Dollar Is Expected to Stay in Tight Range This Week

0810 GMT – The U.S. dollar is likely to stay in a tight range this week, keeping the DXY dollar index in the 102-103 region, says ING currency analyst Francesco Pesole in a note. Recent better-than-expected U.S. data haven’t triggered a dollar rebound and the consensus view that the currency will decline later this year “seems to be making investors keen to sell dollar rallies,” he says. Investors probably need clearer signals from the Federal Reserve that data don’t justify the market pricing in so many interest-rate cuts. Still, the safe-haven dollar could benefit due to Middle East tensions and concerns about China-Taiwan relations after Taiwan’s elections, he says. The DXY dollar index is steady at 102.454. ([email protected])