FOREX-Dollar falls as U.S. earning season kicks off

(New throughout; changes dateline, previous LONDON)
By Kate Duguid
NEW YORK, July 13 (Reuters) - The U.S. dollar edged lower on
Monday as investors looked to domestic corporate earnings and
upcoming retail data to gauge whether guarded optimism on the
country's economic outlook is justified.
The index that measures the dollar against a basket of six
other major currencies - which often serves as a safe-haven for
investors seeking high-quality assets in moments of market
volatility - was down 0.31% in North American morning trade. 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.
The S&P 500 index .SPX was up 0.90% on Monday morning and
the Dow .DJI was up 1.15% as 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 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. The week's main sights are
on U.S. indicators Thursday on retail spending and weekly
jobless claims," said Joe Manimbo, senior market analyst at
Western Union Business Solutions.
U.S. coronavirus cases surged over the weekend, as Florida
reported an increase of more than 15,000 new cases in 24 hours,
a record for any state, surpassing a peak hit in New York in
April. The euro rose 0.63% to $1.137 EUR= , maintaining its
uptrend since late last month and was on track for its best day
since June 22.
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.