USD shows weak gains on Monday morning followed by a so-called comeback from a tedious two-week drop on Friday. This could be a marker of U.S. economy getting back on track after a bad couple of weeks.
April month has been tough on the dollar, causing the currency to slide in the range of 5% against the major counterparts. Dollar has disappointed with it’s weaker than expected performance causing rumors of increase in interest rates in the upcoming months.
Friday results hinted that speculators are getting into dollar again, pushing the currency’s long positions to the lowest in almost 5 months.
"It's too early to call for a new trend of dollar strength at the moment," said Ulrich Leuchtmann, head of FX research at Commerzbank in Frankfurt. "The big correction of extreme dollar long positions, especially against the euro, has not been visible yet. The pain of those still betting that this is a correction has to increase."
GBP went down 0.1% to $1.5135. Trades were rather thin because of UK bank holiday.
EURO slipped 0.3% to $1.1167. Last week euro saw a rise of $1.1290 as the German bund yields fluctuated and data hinted that euro zone was getting out of the deflation.