The US dollar continues to trade with a firm bias against the majors as markets await the key FOMC meet tomorrow. Despite a stronger than expected consumption number on Friday as indicated by April retail sales, the Fed is expected to ease by another 50 bps. However, there is small probability that the Fed might ease by 25 bps if it perceives that the worst is possibly over for the US economy. Dollar-Yen rallied to 122.77 but could not pierce the key 122.80 level. The Euro is having a bad start to the week sinking to a low of 87.36 cents against the US dollar and 107.15 against the Yen.
Sentiment remains gloomy for the common currency and it looks set for further losses.
Cable too is trading on a weak note against the dollar in the 1.4175-90 range. On the data front UK April PPI is due later today. All rights are reserved. All rights are reserved. All rights reserved.