TOKYO- The dollar held steady against most currencies on Monday as investors awaited data expected to show the US services sector stopped contracting, which would further lift hopes for an economic recovery from the coronavirus pandemic.
The euro moved in a narrow range before economic data from Germany and the eurozone that are also forecast to show a sharp rebound in corporate activity and retail sales, which would ease concerns about the economic outlook.
The yen fell against most major currencies as gains in Asian share prices encouraged some risk-on trades.
A steady rise of new coronavirus infections in the United States has discouraged some investors from taking big positions in the currency market, but most market participants remain focused on the growing likelihood that major economies will continue to recover.
“When it comes to dollar/yen, recovery expectations are supporting the dollar, but worries about the virus are capping the upside,” said Masafumi Yamamoto, chief currency strategist at Mizuho Securities. — Reuters
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