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Dollar mixed to higher vs. rivals, U.S. data in focus

Published 05/15/2013, 05:59 AM
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Investing.com - The U.S. dollar was mixed to higher against the other major currencies on Wednesday, as investors awaited the release of U.S. data later in the day, while downbeat economic growth data from the euro zone weighed on demand for risk-related assets.

During European morning trade, the dollar was higher against the euro, with EUR/USD slipping 0.15% to 1.2900.

Preliminary data showed that euro zone gross domestic product fell 0.2% in the first quarter, more than the expected 0.1% fall, after a 0.6% decline in the previous quarter.

The report came after preliminary data showed that Germany's GDP rose less-than-expected in the first quarter, adding 0.1% after a 0.7% decline in the previous quarter. Analysts had expected the GDP to rise 0.3% in the first quarter.

Year-on-year, Germany's GDP contracted by 1.7%, disappointing expectations for a 0.2% a rise, after an increase of 0.1% in the fourth quarter.

The greenback was lower against the pound, with GBP/USD adding 0.19% to 1.5240.

The pound strengthened after official data showed that the number of unemployed people in the U.K. declined far-more-than expected in April, dropping by 7,300 after a 9,900 decline in March.

Analysts had expected the number of unemployed people to fall by 3,000 last month.

Separately, the U.K. unemployment rate ticked down to 7.8 in March, from 7.9 the previous month. Analysts had expected the unemployment rate to remain unchanged.

In addition, the Bank of England, in its monthly Inflation Report, raised hopes over the economy by predicting a "modest and sustained" recovery but warned that inflation will remain stubbornly high until at least the end of 2015.

Elsewhere, the greenback was steady against the yen, with USD/JPY dipping 0.01% to trade at 102.40, and higher against the Swiss franc, with USD/CHF rising 0.21% to 0.9691.

In Switzerland, data showed that the ZEW economic expectations index dropped to 2.2 last month, from a reading of 20.0 in March, disappointing expecatations for an improvement to 25.0.

Government data earlier showed that tertiary industry activity in Japan dropped 1.3% in March, more than the expected 0.6% fall, after a 1.2% increase the previous month.

The greenback was higher against its Canadian, Australian and New Zealand counterparts, with USD/CAD gaining 0.20% to 1.0201, AUD/USD edging down 0.16% to 0.9874 and NZD/USD dipping 0.01% to 0.81967.

Earlier Wednesday, official data showed that new motor vehicle sales in Australia dropped 1.6% in April, after a 0.5% fall the previous month.

A separate report showed that Australia's wage price index rose 0.7% in the first quarter, less than the expected 0.8% increase, after a 0.8% gain in the previous quarter.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.28% to 83.94.

Later in the day, the U.S. was to release data on producer price inflation, industrial production, the capacity utilization rate and a report on manufacturing activity in New York State.


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