Investing.com - The U.S. dollar gave up ground against most major currencies on Monday, as data showing a third consecutive monthly decline in U.S. retail sales bolstered expectations for another round of easing by the Federal Reserve.
During U.S. morning trade, the dollar pared gains against the euro, with EUR/USD dipping 0.04% to 1.2243, off an earlier low of 1.2176.
The Commerce Department said U.S. retail sales fell by a seasonally adjusted 0.5% in June, confounding expectations for a 0.2% increase, after a 0.2% drop in May.
It was the first time retail sales had dropped in three consecutive months since late 2008.
Core retail sales, which exclude automobile sales, declined for the second consecutive month, dropping 0.4%, against expectations for an increase of 0.1%, after falling by 0.4% in May.
The data fuelled speculation over the possibility of another round of easing from the U.S. central bank, ahead of Fed Chairman Ben Bernanke's testimony on the economic outlook to the U.S. Senate on Tuesday and Wednesday.
In June, Bernanke said the Fed remained prepared to take additional steps to support economic growth if necessary, including additional asset purchases.
The euro remained under pressure from sustained concerns over the region’s debt crisis, as uncertainty over whether some bondholders could be forced to accept losses under the terms of Spain's bank bailout weighed.
Meanwhile, Germany’s constitutional court announced that it will deliver a ruling on whether the euro zone’s permanent bailout fund contravenes the German constitution on September 12, disappointing hopes for an earlier decision.
The greenback erased gains against the pound, with GBP/USD up 0.27% to1.5617.
Earlier Monday, the International Monetary Fund said that the outlook for growth in the U.K. had deteriorated more than any other G8 nation over the past three months, when it released its forecasts for global growth.
The IMF said it now expected the U.K. economy to expand by just 0.2% this year, down from 0.8% in April and by 1.4% in 2013.
Elsewhere, the greenback was down against the broadly firmer yen, with USD/JPY shedding 0.55% to trade at 78.74, but remained marginally higher against the Swiss franc, with USD/CHF up 0.09% to 0.9813.
The greenback was mixed against its Canadian, Australian and New Zealand counterparts, with USD/CAD up 0.21% to 1.0158, AUD/USD inching up 0.06% to trade at 1.0233 and NZD/USD rising 0.09% to hit 0.7965.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, dipped 0.03% to 83.41.
The IMF said it now expects global growth of 3.5% in 2012, down from a forecast of 3.6% three months ago and revised down its outlook for growth next year to 3.9% from a previous forecast of 4.1%.
During U.S. morning trade, the dollar pared gains against the euro, with EUR/USD dipping 0.04% to 1.2243, off an earlier low of 1.2176.
The Commerce Department said U.S. retail sales fell by a seasonally adjusted 0.5% in June, confounding expectations for a 0.2% increase, after a 0.2% drop in May.
It was the first time retail sales had dropped in three consecutive months since late 2008.
Core retail sales, which exclude automobile sales, declined for the second consecutive month, dropping 0.4%, against expectations for an increase of 0.1%, after falling by 0.4% in May.
The data fuelled speculation over the possibility of another round of easing from the U.S. central bank, ahead of Fed Chairman Ben Bernanke's testimony on the economic outlook to the U.S. Senate on Tuesday and Wednesday.
In June, Bernanke said the Fed remained prepared to take additional steps to support economic growth if necessary, including additional asset purchases.
The euro remained under pressure from sustained concerns over the region’s debt crisis, as uncertainty over whether some bondholders could be forced to accept losses under the terms of Spain's bank bailout weighed.
Meanwhile, Germany’s constitutional court announced that it will deliver a ruling on whether the euro zone’s permanent bailout fund contravenes the German constitution on September 12, disappointing hopes for an earlier decision.
The greenback erased gains against the pound, with GBP/USD up 0.27% to1.5617.
Earlier Monday, the International Monetary Fund said that the outlook for growth in the U.K. had deteriorated more than any other G8 nation over the past three months, when it released its forecasts for global growth.
The IMF said it now expected the U.K. economy to expand by just 0.2% this year, down from 0.8% in April and by 1.4% in 2013.
Elsewhere, the greenback was down against the broadly firmer yen, with USD/JPY shedding 0.55% to trade at 78.74, but remained marginally higher against the Swiss franc, with USD/CHF up 0.09% to 0.9813.
The greenback was mixed against its Canadian, Australian and New Zealand counterparts, with USD/CAD up 0.21% to 1.0158, AUD/USD inching up 0.06% to trade at 1.0233 and NZD/USD rising 0.09% to hit 0.7965.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, dipped 0.03% to 83.41.
The IMF said it now expects global growth of 3.5% in 2012, down from a forecast of 3.6% three months ago and revised down its outlook for growth next year to 3.9% from a previous forecast of 4.1%.