Dollar Faces Further Falls as Correlation to Risk Shifts
0821 GMT – The euro could extend its current gains against the dollar slightly as speculators continue to bet against the U.S. currency, ING analyst Francesco Pesole says in a note. Markets and consensus forecasts seen to be aligning for two further interest-rate cuts by the European Central Bank this year, he says. However, the risks remain skewed towards a weaker dollar. 'We still see $1.120 as a good short-term anchor for the euro, although the bias seems to be for testing $1.130 rather than $1.110 in the short term on the back of lingering dollar strategic selling.' The euro rises 0.2% to $1.1208. (renae.dyer@wsj.com)
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