Market Recap: Dollar Retreats Amid Economic Data Focus and Geopolitical Developments

On Monday, the U.S. dollar experienced a decline against its major counterparts, with investors focusing on upcoming economic data that includes reports on U.S. personal income, spending, and inflation metrics favored by the Federal Reserve.

Investor attention is also drawn to reports on new home sales, consumer confidence, durable goods orders, and pending home sales, as recent indicators suggest the U.S. economy may be slowing without entering a recession.

Later in the week, the final GDP data for the first quarter of 2024 is anticipated, and a strong report could increase pressure on the Federal Reserve to tighten monetary policy further.

Key figures from the Federal Reserve speaking this week include San Francisco Fed President Mary Daly and Fed Governors Lisa Cook and Michelle Bowman.

Geopolitically, focus is on the first U.S. presidential debate scheduled for June 27 between Joe Biden and Donald Trump, alongside the beginning of the French election campaign.

The dollar index initially dropped to 105.37 before recovering to 105.48, though it remained in negative territory with a loss of 0.29%.

Against the Euro, the dollar weakened to 1.0737, down approximately 0.4%, while against the Pound Sterling, it eased to 1.2687 from Friday's close at 1.2645.

The dollar also declined against the Japanese yen to 159.62 following concerns about potential government intervention to bolster the yen.

Against the Australian dollar, the dollar weakened to 0.6657. Conversely, the Swiss franc strengthened to 0.8929 against the greenback, and the Canadian dollar appreciated to 1.3659 per U.S. dollar.