LONDON, June 9 - The euro traded a touch weaker against the dollar in morning European trade on Monday, but held within recent ranges less than three cents below record highs on the greenback. A weekend newspaper report that the European Central Bank (ECB) would consider intervening to cap the euro's rise if it climbed above $1.30 had little impact on the euro/dollar rate, which remained in a consolidation mode. At 0653 GMT, the euro was 0.15 percent down on the day against the dollar at $1.1676 , still a long way off the level that the Times newspaper report suggested could spark ECB intervention. Markets are also waiting for the 1430 GMT announcement of Britain's assessment of economic tests on joining the euro. The UK government is widely expected to say Britain is not yet ready to drop the pound in return for the single currency.
Sterling traded up a third of a percent since last week's close against the euro at 70.11 pence and slightly higher on the dollar at $1.6644 . But markets are focusing more on last week's decision by the Bank of England to keep rates on hold, which fanned a sharp rally in the pound, than the euro decision which is now largely priced in. Several European countries, including Germany and Switzerland, have a market holiday on Monday.
Macroeconomic indicators slated for release on Monday include UK May industrial production at 0830 GMT, April wholesale inventories in the U.S. at 1400 GMT and Kansas City manufacturing survey for May at 1500 GMT.//