The dollar has opened the week on a firm footing this morning on hopes that figures this week will reinforce the view that the US economy is on the mend. At 0900, the euro was trading at USD1.1230 down from USD1.1260 on Friday, when it declined on the back of US industrial production figures, the strongest sine January. Sterling was also lower on the dollar, at USD1.5944. "Although there are few numbers due, the Michigan survey, as well as the Philly Fed index and leading indicators, are expected to underpin recovery hopes," said Geraldine Concagh, senior economist at AIB Treasury.
"New York's black-out only caused a temporary setback for the dollar, with everything expected to be back to normal today," she added. Meanwhile, European data this week will show that the eurozone economy continues to lag the US. French GDP data for the second quarter and eurozone industrial production for June should confirm subdued activity following recent numbers from Germany and Italy showing the eurozone's number one and three economies in recession. //www.fxcentre.com