SINGAPORE- The dollar has bounced off recent lows and was firm in choppy trade on Tuesday ahead of a handful of data releases and central bank meetings which investors expect to guide the rates outlook.
The euro fell 0.3 percent overnight on softer-than-forecast German business morale and expectations that the European Central Bank (ECB) will stay dovish when it meets on Thursday.
The euro last bought $1.1598, near a one-week low.
Other overnight moves were modest, with the dollar easing a tad on the Aussie, kiwi and sterling. It was steady on Tuesday save for a small rise on Japan’s yen to 113.83 yen, and a slight dip on the Aussie.
The US dollar index rose held at 93.856.
“The dollar looks to be finding its feet in the mid-93s,” analysts at Westpac said in a note, as focus turns to the ECB’s meeting as well as US growth data due on Wednesday.
“The focus will turn to the ECB and US Q3 GDP this week. The ECB likely underscores dovish guidance, while US GDP will show the rebound stalling, but price pressures continuing to build,” they said, setting the scene for the Federal Reserve to announce a reduction in bond purchases as soon as next week.
