The euro eased against the dollar in early deals today, as Friday's better than expected trade data and weekend comments from European Central Bank (ECB) head Wim Duisenberg lent mild support to the greenback. At 0900, the single currency was trading down a touch at USD1.1726, while against sterling it was also off slightly at STG0.7059. According to Geraldine Concagh of AIB Capital Markets, the dollar received support from better than expected trade data on Friday but its underlying tone remains defensive.
Duisenberg's comments that the greater flexibility in exchange rates mentioned by the G7 referred not to the euro-dollar exchange rate but to exchange rate regimes in Asian countries also provided limited support for the dollar. "The dollar will be looking to this week's round of US data to show if economic recovery is sustainable. Of particular interest will be Wednesday's retail sales report for September as well as the preliminary Michigan sentiment survey for October," Concagh noted. //www.fxcentre.com