Chart: WorldWideMarkets Alpha Trader
Euro held steady in the upper ban range of 1.0620 - 1.0555 in Europe after rebounding from the 12-year low of 1.0457 from Mar 13 Friday. The euro gained against the U.S. dollar after yesterday's weaker-than-expected U.S. manufacturing, industrial production and housing data pushed the U.S. Treasury bond yields lower and selling of the dollar.
German ZEW Economic Sentiment for March came in lower at 54.8 versus the median forecast of 58, but gained from 53 in February. This was the fifth consecutive monthly advance despite the problems in Greece. The ZEW Current conditions also improved to a reading of 55.1 well above the median forecast of 49.3 versus 45.5 in February. The data provided support to the single currency in the mid-morning trading session in Europe.
The market focus will be on the Fed's two-day meeting beginning Tuesday 3/17 to Wednesday 3/18. Speculation have been on the rise that the Fed will omit the word "patient" from its FOMC statement on the timing of raising interest rates. Expectations for tightening monetary policy may be as early as June which had prompted the dollar's recent strong gains.