posted by 4x-news on May 21

he greenback relinquished some of its overnight gains versus the major currencies, slipping back toward the 1.35-region against the euro on the heels of a stronger start to the week by US equities. The major bourses were all up by over 2%, with the Dow Jones advancing by nearly 2.2% in afternoon trade to 8,445 and the Nasdaq above the 1,700-level with a 2.1% gain.

The May NAHB housing market index was largely inline with expectations, improving to 16 from 14 a month earlier. Economic reports slated for release this week include, for Tuesday, April housing starts and building permits, and on Thursday, weekly jobless claims, April leading indicators, May Philadelphia Fed survey. Housing starts in April are estimated to edge up to 520k units, up from 510k units from March, while building permits are seen improving to 520k units versus 516k units previously.

Traders will continue to focus closely on the equity markets with the greenback and yen moving closely with global capital flows and likely to continue to benefit from any bouts of risk aversion. The dollar had initially gained ground at the start of the Monday session following declines in the Asian equity bourses, but quickly moved lower on positive gains in the US indexes.