Euro Steadies On Positive German Data; Fed In Focus

The euro fell no further the dollar Tuesday morning in New York, after slipping to its lowest since October in the previous session.

The euro got a modest lift from an encouraging report on German economic sentiment, but an early rally fizzled after some modest gains.

Traders were hesitant to take aggressive positions ahead of this afternoon's interest rate announcement from the U.S. Federal Reserve.

While no change to the Fed's benchmark interest rate is expected, markets will be looking to see whether policy makers plant the seeds of a third round of quantitative easing in 2012.

The euro was steady near $1.3185 versus the dollar, little changed from yesterday's 2-month low of $1.3160. Traders were focusing on $1.3144, as a move below than mark will take the euro to its lowest since January.

Net Income of Citibank Cut off 29.75 pct

Citibank NA's performance is on redzone in the first Quarter in 2011. According to Bank Indonesia's financial statement, US made bank must be satisfied with the income which Cut off 29.75 became RP 403.39 billions. Last year at the same period, Citibank have net income Rp 574,3 billions.

the income reduction is caused by interest profit which cut off became Rp 741,194 billions or down 3 percent from Rp 764,178 billions last year.

Thailand GDP On Tap For Friday

Thailand is on Monday scheduled to release gross domestic product figures for the first quarter of 2011, setting the pace for a busy day in Asian economic news. Analysts are expecting GDP to rise 2.6 percent on quarter after adding 3.8 percent in the previous three months.

Japan will provide final numbers for the March leading and coincident indexes, as well as April figures for supermarket sales. Little change is expected from the preliminary readings for the indexes, which saw a score of 99.5 for the leading index and 103.6 for the coincident. Supermarket sales added 0.3 percent on year in March.

Singapore will announce its inflation rate for April, with forecasts expecting CPI to come in at 4.4 percent - down from 5.0 percent in March.

Dollar could strengthen further short-term

Quotes from Societe Generali Cross Asset Research:
-The dollar could strengthen further short term on the back of the evolution of the euro-debt situation, uncertainty regarding the short-term monetary outlook of the ECB, BoE and RBA, and equity market nervousness. The next resistance level for the effective dollar rate is 76.70.
-While some may be tempted to say that investors could reduce their short USD positioning ahead of the likely end of QE2 in June, we do not believe in such a scenario.