The dollar continued its slow march on the euro in late trade as US equity and bond markets rose, boosting sentiment. At 1700, the euro was down at USD1.1139, while against sterling it was also down at STG0.7003. After falling through the USD1.12 level, the euro continued to hover at two week lows with the next support level seen at the 16 July low of USD1.1109, dealers said. Gains on Wall Street and US Treasuries have supported the dollar, but for the greenback to maintain its uptrend bonds will have to stabilise while stocks pick pace up sharply, dealers added.
Analysts also noted central bank interest in buying dollars. Several central banks were net dollar buyers over recent days, first serving to limit the euro's upside and then helping lift the dollar. There was no economic data to speak of to provide the market with anything to chew on. The next trigger may be tomorrow's University of Michigan consumer sentiment index which is expected to rise to 91.5 from 90.9 in July. The euro's slide against the dollar helped sterling gain ground on the single currency. The pound however weakened against the dollar. //www.fxcentre.com