HONG KONG (Thomson Financial) - The US dollar hardly moved against the euro and the yen in afternoon Asian trade on Tuesday as investors opted to move to the sidelines ahead of key economic data due for release later this week.
On Friday the US Commerce Department will announce last month's consumer spending, which accounts for more than two-thirds of gross domestic product. Before that, new homes sales for January will be out on Wednesday.
'The currencies are stuck in a pretty narrow range. The currency market is focused on the US economic data,' said David Mann, currency strategist at Standard Chartered Bank. 'We should see some further increase in dollar selling' should the data confirm market fears that the world's largest economy is on the brink of a recession.
At 1.00 pm (0500 GMT), the euro was quoted at 1.4829 dollars from 1.4832 in Tokyo this morning. The dollar was at 107.92 yen from 108.04.
The dollar, though, may strengthen gradually against major currencies in coming weeks because 'we are nearing the end of the dollar weakness,' said Mann.
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