2017.03.2714:11:00UTC+00Dollar Paring Early Losses After Healthcare Reform Bill Fails

The dollar got off to a weak start Monday, after investors reacted negatively to the decision by Republican leaders to withdraw Trump's healthcare bill intended to repeal and replace Obamacare late Friday. The failure of the Trumpcare bill sparked concerns about the ability of the Trump administration to pass further fiscal reforms, which includes tax cuts and infrastructure spending.

However, the dollar has begun to pare its early losses Monday afternoon after the initial sting from the failed healthcare reform bill has eased. On a light day for economic data, investors are looking forward to the release of the consumer confidence report tomorrow, as well as international trade and the S&P Case-Shiller HPI report.

Eurozone economic recovery is firming, broadening and becoming more resilient, but underlying inflation is yet to signal a convincing upward trend, implying that the single currency economy still needs massive stimulus, European Central Bank policymaker Peter Praet said Monday.

"We need to look through the recent surge in inflation, which is driven by transient factors that will probably fade before long," Praet, who is the ECB chief economist, said in a speech in Madrid.

The dollar dropped to over a 4-month low of $1.0905 against the Euro Monday, but has since bounced back to around $1.0865.

Eurozone money supply growth eased for the second straight month in February, though marginally, figures from the European Central Bank showed Monday.

The broad money measure, M3, rose 4.7 percent year-over-year in February, slower than the 4.8 percent climb in January, which was revised down from 4.9 percent. Economists had expected a 4.9 percent growth for the month.

German business sentiment strengthened to a 68-month high in March as economic impetus pushed up companies' assessment of the current assessment and outlook.

The business confidence index rose to 112.3 in March from a revised 111.1 in February, survey data from the Munich-based Ifo institute revealed Monday. This was the highest reading since July 2011. Economists had forecast the indicator to fall to 110.8 from February's originally estimated 111.0.

The buck fell to nearly a 2-month low of $1.2614 against the pound sterling Monday, but has since rebounded to around $1.2565.

Bank of Japan board members viewed that the bank should not rush to action and it should pursue monetary easing under the current framework with patience, the summary of opinions from the monetary policy meeting showed Monday.

To achieve the price stability target, it is important to bring the economy onto a self-sustaining growth path, members said at the meeting held on March 15 and 16.

Although the economic recovery in Japan has taken hold more firmly amid improvement in the global economy, there is still a long way to go to achieve the price stability target of 2 percent, policymakers noted.

The greenback tumbled to a 4-month low of Y110.101 against the Japanese Yen Monday, but has since risen back to around Y110.590.

Corporate service prices in Japan were up 0.8 percent on year in February, the Bank of Japan said on Monday. That exceeded forecasts for 0.5 percent, which would have been unchanged from the January reading.