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Dollar higher against euro, yen steady

Published 06/09/2014, 06:18 AM
Dollar index edges higher in quiet trade
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Investing.com - The dollar moved higher against the euro on Monday and was little changed against the yen after Friday’s upbeat U.S. jobs report for May indicated that the labor market is continuing to improve.

EUR/USD slid 0.15% to 1.3622, off session highs of 1.3668.

The euro’s losses were held in check amid expectations that the European Central Bank will hold off on further monetary easing for now.

The ECB unveiled a package of measures to avert the threat of persistently low inflation in the euro area on Thursday, but stopped short of announcing an asset purchase program, a factor which lent support to the euro.

Data on Monday showed that euro zone investor confidence deteriorated unexpectedly in June, despite the ECB’s new measures to support growth and inflation.

The Sentix investor confidence index fell to 8.5 this month from 12.8 in May, compared to expectations for an uptick to 13.2.

Trading conditions remained light due to the Whit Monday holiday in some parts of Europe.

The dollar was steady against the yen, with USD/JPY at 102.47, holding below Friday’s highs of 102.60.

The dollar remained supported after Friday’s nonfarm payrolls report showed that the U.S. economy added jobs for the fourth successive month in May, with employment returning to its pre-recession peak.

The pair showed little reaction after data on Monday showed that Japan’s first quarter growth was revised sharply higher.

Japan's economy grew at an annualized rate of 6.7% in the first three months of the year, up from a preliminary estimate of 5.9% growth. The unexpected upward revision was due to a sharp upward revision in Japanese corporate capital spending.

Elsewhere, the dollar was almost unchanged against the pound, with GBP/USD at 1.6806, and gained ground against the Swiss franc, with USD/CHF rising 0.21% to 0.8951.

The Australian dollar and the New Zealand dollar pushed higher, with AUD/USD climbing 0.24% to 0.9355 and NZD/USD easing up 0.13% to 0.8510. Meanwhile, USD/CAD was flat at 1.0929.

The US Dollar Index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.10% to 80.52.

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