Dollar Weakens as Commodities Steady

NEW YORK (TheStreet) -- The dollar was broadly weaker against the majors as stock and commodity markets were steady Tuesday.

The euro was forming a base around $1.40. Eurozone economic data remains supportive of a July rate hike.

U.S. dollar sellers have returned as U.S. equity futures and crude oil rebound, outlining a more constructive market environment. The S&P 500 front future has returned close to the 50-day moving average and crude oil has regained $99 a barrel in a sign that markets are paring back after the sharp losses at the turn of the week. This has allowed the markets to regain $1.41 for the euro and $1.055 for the Aussie with the dollar in broad decline against the majors.

A better-than-expected German IFO helped the market regain a firmer footing as did Spain's strong €3.2 billion sale of three-month and six-month Spanish T-bills.

The Norwegian krone has seen some mixed flows after first-quarter GDP came in weaker than expected, but nevertheless NOK has regained ground against the dollar and the earlier dip against the euro has proved short-lived as correlations kick in in-line with the firmer tone in other commodity majors.

Some switching out of euro and into sterling is visible this morning, with the market shrugging off a poor result for U.K. April public finances and cable reaching a new high for the day of 1.618, on talk that the Greek New Democracy opposition party has rejected the government's privatization proposals, keeping Greek default risk concerns lingering.

This commentary comes from an independent investor or market observer as part of TheStreet guest contributor program. The views expressed are those of the author and do not necessarily represent the views of TheStreet or its management.