FOREX-Dollar stabilizes ahead of earnings, U.S. consumer data

(New throughout)
By Kate Duguid
NEW YORK, July 13 (Reuters) - The dollar edged lower on
Monday as investors looked to U.S. corporate earnings and
upcoming retail data to gauge whether guarded optimism on the
economic outlook was justified.
The index that measures the safe-haven dollar against a
basket of six other major currencies =USD pared early losses
to end the session just 0.07% lower at 96.538.
The dollar ended its third week of losses on Friday as
investors bought into risk-sensitive currencies on bets that the
worst of the pandemic's sweeping impact was over.
But on Monday afternoon, California Governor Gavin Newsom
ordered a massive retrenchment of the state's optimistic
reopening, shutting bars and banning indoor restaurant dining
statewide and closing churches, gyms and hair salons in
hardest-hit counties. The dollar regained ground after the news out of California,
which sent riskier assets like U.S. stocks lower. The S&P 500
index .SPX was last down 0.95%.
The major stock indexes had begun the day up after
second-quarter earnings kicked off with PepsiCo Inc PEP.O
beating analysts' estimates. Wall Street banks JPMorgan JPM.N ,
Citigroup C.N and Wells Fargo WFC.N are set to report
earnings on Tuesday. While Refinitiv data suggests second-quarter results will
show the second-biggest quarterly drop in corporate earnings
since 1968, investors maintain some degree of confidence in the
U.S. consumer. Consumer price index data on Tuesday, retail sales data on
Thursday and consumer sentiment data Friday are expected to
offer insight into how Americans are spending.
"America's economy-driving consumer will be in the
spotlight, one that it will share with a slew of key events like
central bank meetings in Canada and Europe. Just how far down
the road to recovery the world's major economies have traveled
will be gleaned from top-tier data," said Joe Manimbo, senior
market analyst at Western Union Business Solutions.
"The week's main sights are on U.S. indicators Thursday on
retail spending and weekly jobless claims."
The euro rose 0.42% to $1.134 EUR= , maintaining its
uptrend since late last month. Looming large for the single
currency this week is a European Union summit on July 17-18, at
which leaders need to bridge gaps on a long-term budget.
Investors will also watch for whether an agreement on a
proposed 750 billion-euro recovery fund for the bloc emerges.