Major currencies were confined to narrow ranges in late deals with the absence of London traders reducing activity to a minimum. Most of the majors were simply "treading water" amid the sparse trade, analysts said, with the euro up a touch by 1700 at USD1.0885 and STG 0.6923. Dealers said that the UK bank holiday today and a US Labour Day next week mean that the markets will likely remain illiquid until next week.
This leaves the dollar subject to further unwinding of short positions and more demand from Asian central banks, they said. In the meantime, there is still much hope that this week's US data will continue to point at a gradual recovery, underpinning equity markets and in turn adding to the dollar appeal. The main events for the week will unfold later on as US economic data releases pick up again after a quiet period. Midweek, US durable goods orders for July are scheduled for release. After June's 2.5pc increase, July is expected to be less robust but still maintaining the upward trend. Standard Chartered economists see a 1.3pc rise. The US conference board's consumer confidence survey will also be closely watched, analysts said.// www.fxcentre.com