Forex outlook


The USD felt for a second consecutive day as traders took in profits ahead of U.S. economic data that may not be very positive for the interest rate rising.
Retail sales report and CPI data are the main focus for investors.
The market believes that a rate rise at the Fed's next meeting later this month is a sure bet, but faith is restricted when it comes to the meeting in May.
San Francisco Fed President said that policy-makers needed to measure the risk of too high interest rates, and suggested she was comfortable with the outlook for inflation, although it was running near the top of the Fed's comfort zone.
The USD was buying 118.55 JPY, down from around 118.75 JPY.
The EUR was slightly higher at USD 1.1970.
The EUR gained across the board with some analysts citing a report that the UAEs' central bank was considering putting more of its reserves, estimated at around $23 billion in December, into EURs.
Some traders, said the move was more technical, and had more relation with a covering of short positions after the EUR finished above $1.1900 on Friday.
Currency traders were also looking ahead to the ZEW survey of German investor sentiment.
The headline index is expected to come in near a two-year high, which could add to expectations that the ECB will keep raising interest rates after two quarter point rises since December.




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