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Dollar broadly lower as upbeat earnings buoy sentiment

Published 07/19/2012, 08:44 AM
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Investing.com - The U.S. dollar remained lower against the other major currencies on Thursday, following the release of disappointing U.S. employment data as investor sentiment was buoyed by robust corporate earnings, which supported demand for higher-yielding assets.

During European afternoon trade, the dollar was fractionally lower against the euro, with EUR/USD inching up 0.06% to 1.2289.

The dollar remained little changed after the U.S. Department of Labor said the number of people who filed for unemployment assistance in the U.S. last week rose by 34,000 to a seasonally adjusted 386,000, compared to expectations for an increase to 365,000.

The euro remained under pressure after Spain saw borrowing costs rise sharply at an auction of government debt earlier, fuelling fears that the country may need a full bailout.

Following the auction the yield on the country’s 10-year bonds was at 7.02%, breaching the critical 7% threshold, widely viewed as unsustainable in the long run.

Investors were looking ahead to a German vote on approving the country’s part in bailout package for Spanish banks later in the day.

The greenback was lower against the pound, with GBP/USD up 0.36% to 1.5708.

In the U.K., official data showed that retail rose less-than-expected in June, inching up 0.1%, disappointing expectations for a 0.6% gain, as wet weather hurt demand for outdoor products.

Elsewhere, the greenback was lower against the yen and the Swiss franc, with USD/JPY down 0.30% to 78.55 and USD/CHF dipping 0.07% to 0.9769.

The greenback was broadly lower against its Canadian, Australian and New Zealand counterparts, with USD/CAD shedding 0.28% to trade at 1.0072, AUD/USD rallying 0.72% to 1.0434 and NZD/USD up 0.56% to hit 0.8045.

A report earlier showed that Canadian wholesale sales rose by 0.9% in May, easily beating expectations for a 0.2% increase and gaining for the fourth consecutive month.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.22% to 82.91.

Later Thursday, the U.S. was to publish data on existing home sales and manufacturing activity in Philadelphia.


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