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Dollar Flounders; Euro Upside Seen Capped
The dollar wallowed at 16-month lows against a basket of major currencies early in Asia on Friday but looked unlikely to extend losses significantly ahead of Chinese economic data. Unofficial figures on Thursday suggested the Chinese data including retail sales, industrial output and consumer inflation due at 0200 GMT will probably be stronger than expected. "While this will be important for sentiment, the long-term story of recycling reserves out of dollars remains ever more pronounced following China's record reserve accumulation in Q1 of over $3 trillion," analysts at BNP Paribas wrote in a client note. Indeed, ... (full story)