Dollar mixed vs. rivals ahead of U.S. employment report

Published 07/06/2012, 05:40 AM
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Investing.com - The U.S. dollar was mixed to higher against its major counterparts on Friday, as investors eyed the release of highly anticipated U.S. employment data later in the day, while global growth concerns continued to weigh on market sentiment.

During European late morning trade trade, the dollar was fractionally higher against the euro, with EUR/USD edging down 0.08% to hit 1.2381.

Sentiment on the euro remained vulnerable after after European Central Bank President Mario Draghi stated on Thursday that the economic outlook faces downside risks, adding that indicators for the second quarter point to weakening growth in the euro zone.

Draghi said that there was probably a "renewed weakness in economic growth" in the last three months, with "heightened uncertainty”.

Draghi also refused to speculate on the chances of a third round of Long Term Refinancing Operations, in which provides cheap loans to European banks in an attempt to encourage them to lend.

The comments came after the central bank cut its benchmark interest rate to a record low 0.75% in July, in a bid to bolster faltering growth in the region.

The central bank also lowered its marginal lending to 1.50% from 1.75% and the deposit facility rate to 0% from 0.25%.

The greenback was lower against the pound, with GBP/USD adding 0.10 d% to hit 1.5540.

Official data showed earlier that U.K. producer price inflation input fell slightly more-than-expected in June, declining 2.2% after a 2.6% fall the previous month, while producer price inflation output ticked down 0.4%, more than expectations for a 0.2% fall and following a 0.2% decline in May.

On Thursday, Bank of England policymakers left interest rates unchanged at 0.5% on Thursday and voted to increase the stock of asset purchases to GBP375 billion.

Elsewhere, the greenback was steady against the yen and moderately higher against the Swiss franc, with USD/JPY easing 0.05% to hit 79.88 and USD/CHF inching 0.08% higher to hit 0.9701.

In Switzerland, official data showed that consumer price inflation fell 0.3% in June, in line with expectations.

A separate report showed that foreign currency reserves increased to CHF364.9 billion in June, from CHF305.9 billion the previous month.

In addition, the greenback was higher against its Canadian, Australian and New Zealand counterparts, with USD/CAD adding 0.14% to hit 1.0157, AUD/USD falling 0.29% to hit 1.0258 and NZD/USD slipping 0.27% to hit 0.8013.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.09%, to trade at 83.02.

Later in the day, the U.S. was to publish reports on nonfarm payrolls and the unemployment rate.


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