Dollar in tight range ahead of U.S. services sector data

RATE DOLLAR -  TOKYO. The dollar held steady against most currencies on Monday as investors awaited data expected to show the U.S. services sector stopped contracting, and highlighting the economic recovery from the coronavirus pandemic.

The euro moved in a narrow range before economic data from Germany and the eurozone that are also forecast to show a sharp rebound in corporate activity and retail sales, which would ease concerns about the economic outlook.

A steady rise of new coronavirus infections in the United States has discouraged some investors from taking on excessive risk, but most market participants remain focused on the growing likelihood that major economies will continue to recover.

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"When it comes to dollar/yen, recovery expectations are supporting the dollar, but worries about the virus are capping the upside," said Masafumi Yamamoto, chief currency strategist at Mizuho Securities.

"The markets are focused on other currency pairs, like the Australian dollar, which is still in a clear uptrend against the U.S. dollar due to the rise in copper prices."

The dollar held steady at 107.56 yen on Monday in Asia following a 0.3% gain last week. Market activity was subdued following the July 4 long weekend holiday in the United States.

The euro changed hands at US$ 1.1247. Against the British pound, the common currency bought 90.18 pence .

Sterling moved in a narrow range at $1.2474. Against the Swiss franc, the dollar was quoted at 0.9455.