The dollar slid to a three-week low against the yen before data tomorrow that economists said will show U.S. retail-sales growth slowed, strengthening the case against faster tapering by the Federal Reserve.
Goldman Sachs Group Inc.’s Thomas Stolper, who correctly predicted the dollar’s slide against the euro this year, is deviating from the consensus that the greenback will be among the best currencies to own in 2014.
The euro, which reached a two-year high versus the dollar this month, is poised to extend its gains as the European Central Bank’s audit of the region’s financial system encourages lenders to repatriate overseas assets.
The pound rose for a second day against the dollar before reports tomorrow that economists said will show industrial production expanded and the trade deficit narrowed, adding to signs the recovery is progressing.
Investors have begun to flee the euro in preference for the U.S. dollar amid fears that the European debt crisis may worsen, Morgan Stanley’s Global Head of Foreign Exchange Hans Redeker said in an interview in the Handelsblatt.
Hans Redeker , who was hired as Morgan Stanley’s head of foreign-exchange strategy in March, said he plans to revise the bank’s euro forecast “substantially lower” on weak demand for European bonds and equities.