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Forex - Dollar broadly lower after Bernanke prepared remarks

Published 02/09/2011, 10:40 AM
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Investing.com – The U.S. dollar was broadly lower against its major counterparts on Wednesday, following the release of Federal Reserve Chairman Ben Bernanke's prepared testimony to the House Budget Committee.

During European late afternoon trade, the greenback was down against the euro, with EUR/USD climbing 0.59% to hit 1.3705.

Earlier in the day, media outlets reported that German Bundesbank President Axel Weber had dropped out of the running to succeed Jean-Claude Trichet as head of the European Central Bank. Trichet’s eight-year term ends in October.

The greenback was also lower against the pound, with GBP/USD climbing 0.28% to hit 1.6114.

The Office for National Statistics said earlier Wednesday that Britain's goods trade gap widened to GBP9.2 billion from a record GBP8.4 billion in November. Economists had forecast a broadly steady reading of GBP8.6 billion pounds.

Elsewhere, the greenback was up against the yen but down against the Swiss franc, with USD/JPY easing up 0.05% to hit 82.41 and USD/CHF shedding 0.28% to hit 0.9604.

Meanwhile, the greenback was down against its Canadian counterpart but up against its Australian and New Zealand cousins, with USD/CAD sliding 0.3% to hit 0.992, AUD/USD dropping 0.18% to hit 1.0126 and NZD/USD sliding 0.2% to hit 0.7733.

Earlier Wednesday, New Zealand’s finance minister said there was a possibility that gross domestic product in the fourth quarter had contracted. A contraction in the fourth quarter would put the nation back into a technical recession as third quarter GDP contracted 0.2%.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.39%.

Bernanke's comments echoed recent dovish remarks and reaffirmed the central banks intention to leave the current course of bond buying, known as QEII, in place.

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