Investing.com - The U.S. dollar was trading in a narrow range against its major counterparts on Thursday, after weak U.S. manufacturing data renewed concerns over the outlook for the country’s economic recovery but safe haven demand remained supported by sustained concerns over the situation in the euro zone.
During U.S. morning trade, the dollar was trading close to a 22-month high against the euro, with EUR/USD dipping 0.02% to hit 1.2578.
The Commerce Department said U.S. core durable goods orders fell by a seasonally adjusted 0.6% in April, defying expectations for a 0.9% gain and dropping for the second consecutive month.
Total durable goods orders, which include transportation items, inched by a seasonally adjusted 0.2% in April, below expectations for a 0.5% gain.
The euro fell sharply against the greenback earlier after data showed that manufacturing activity in the euro area contracted at the fastest pace since June 2009 in May, while service sector activity shrank at the steepest pace in seven months.
Germany manufacturing activity slowed to the lowest level in almost three years in May, sparking fresh fears over the impact of the euro zone debt crisis on the region’s largest economy.
A separate report showed that the German Ifo business climate index deteriorated significantly more-than-expected in May, pressured lower by uncertainty in the euro zone.
Market participants also remained risk adverse after Wednesday’s summit of European Union leaders made little signs of progress in tackling the debt crisis in the region.
The greenback was little changed against the pound, with GBP/USD dipping 0.01% to hit 1.5691.
Data from the U.K. showed that the economy contracted by 0.3% in the three months to March, more than preliminary estimate for a 0.2% contraction, driven by the sharpest quarterly contraction in construction since the first quarter of 2009.
Elsewhere, the greenback was marginally lower against the yen, with USD/JPY inching down 0.08% to hit 79.42, but pushed higher against the Swiss franc, with USD/CHF adding 0.17% to hit 0.9562.
The greenback was broadly lower against its Canadian, Australian and New Zealand counterparts, with USD/CAD inching up 0.06% to hit 1.0258, AUD/USD climbing 0.32% to hit 0.9777 and NZD/USD rising 0.45% to hit 0.7532.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, edged up 0.01% to trade at 82.18.
Also Thursday, the U.S. Department of Labor said the number of people who filed for unemployment assistance in the U.S. last week fell to a seasonally adjusted 370,000, in line with expectations.
During U.S. morning trade, the dollar was trading close to a 22-month high against the euro, with EUR/USD dipping 0.02% to hit 1.2578.
The Commerce Department said U.S. core durable goods orders fell by a seasonally adjusted 0.6% in April, defying expectations for a 0.9% gain and dropping for the second consecutive month.
Total durable goods orders, which include transportation items, inched by a seasonally adjusted 0.2% in April, below expectations for a 0.5% gain.
The euro fell sharply against the greenback earlier after data showed that manufacturing activity in the euro area contracted at the fastest pace since June 2009 in May, while service sector activity shrank at the steepest pace in seven months.
Germany manufacturing activity slowed to the lowest level in almost three years in May, sparking fresh fears over the impact of the euro zone debt crisis on the region’s largest economy.
A separate report showed that the German Ifo business climate index deteriorated significantly more-than-expected in May, pressured lower by uncertainty in the euro zone.
Market participants also remained risk adverse after Wednesday’s summit of European Union leaders made little signs of progress in tackling the debt crisis in the region.
The greenback was little changed against the pound, with GBP/USD dipping 0.01% to hit 1.5691.
Data from the U.K. showed that the economy contracted by 0.3% in the three months to March, more than preliminary estimate for a 0.2% contraction, driven by the sharpest quarterly contraction in construction since the first quarter of 2009.
Elsewhere, the greenback was marginally lower against the yen, with USD/JPY inching down 0.08% to hit 79.42, but pushed higher against the Swiss franc, with USD/CHF adding 0.17% to hit 0.9562.
The greenback was broadly lower against its Canadian, Australian and New Zealand counterparts, with USD/CAD inching up 0.06% to hit 1.0258, AUD/USD climbing 0.32% to hit 0.9777 and NZD/USD rising 0.45% to hit 0.7532.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, edged up 0.01% to trade at 82.18.
Also Thursday, the U.S. Department of Labor said the number of people who filed for unemployment assistance in the U.S. last week fell to a seasonally adjusted 370,000, in line with expectations.