Investing.com - The U.S. dollar was mixed against its major counterparts on Thursday, as investors remained cautious amid sustained concerns over political and financial turmoil in Greece and ahead of the release of key U.S. economic data later in the day.
During European morning trade, the dollar was lower against the euro, with EUR/USD addind 0.19% to hit 1.2951.
The euro’s gains were limited as Alexis Tsipras, the head of Greece’s second-biggest party Syriza, gave up his attempt to form a new government on Wednesday, putting Greek Socialist leader Evangelos Venizelos in a position to make a last-ditch attempt to form a government on Thursday.
Chances of any deal on a coalition government looked slim after two failed attempts, making new elections in three to four weeks the most likely outcome and fueling fears that Greece will not have a government in place in time to secure its next tranche of international aid next month.
Adding to concerns, the European Central Bank cut its 2012 gross domestic product growth outlook to minus 0.2% from minus 0.1%, in its monthly report published earlier, as downside risks remain to the economic outlook.
Earlier in the day, official data showed that French industrial production fell more-than-expected in March, declining 0.9% after a 0.9% rise the previous month. Analysts had expected industrial production to fall 0.4% in March.
The greenback was higher against the pound, with GBP/USD falling 0.10% to hit 1.6112.
Sterling found some support after official data showed that manufacturing production in the U.K. rose more-than-expected in March, adding 0.9% after a 1.1% decline the previous month. Analysts had expected manufacturing production to rise 0.5% in March.
But investors remained cautious ahead of the release of the Bank of England’s rate decision later in the day.
Elsewhere, the greenback was higher against the yen but lower against the Swiss franc, with USD/JPY inching up 0.10% to hit 79.72 and USD/CHF retreating 0.16% to hit 0.9275.
The greenback was lower against its Canadian, Australian and New Zealand counterparts, with USD/CAD declining 0.11% to hit 1.0015, AUD/USD rising 0.53% to hit 1.0103 and NZD/USD adding 0.40% to hit 0.7871.
The Australian dollar rallied earlier after official data showed that Australia’s unemployment rate fell unexpectedly to 4.9% from 5.2% in March. Analysts had expected the unemployment rate to rise to 5.3% in April.
Commodity-related currencies remained under pressure however, as data showed earlier that Chinese exports and imports in April were well below analysts’ expectations.
In a report, the Customs General Administration of China said the nation’s trade surplus widened to USD18.42 billion in April from USD5.35 in the previous month.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, eased 0.02%, to hit 80.23.
Later in the day, the U.S. was to release official data on trade balance, followed by government reports on unemployment claims and import prices. Federal Reserve Chairman Ben Bernanke was also due to speak.
During European morning trade, the dollar was lower against the euro, with EUR/USD addind 0.19% to hit 1.2951.
The euro’s gains were limited as Alexis Tsipras, the head of Greece’s second-biggest party Syriza, gave up his attempt to form a new government on Wednesday, putting Greek Socialist leader Evangelos Venizelos in a position to make a last-ditch attempt to form a government on Thursday.
Chances of any deal on a coalition government looked slim after two failed attempts, making new elections in three to four weeks the most likely outcome and fueling fears that Greece will not have a government in place in time to secure its next tranche of international aid next month.
Adding to concerns, the European Central Bank cut its 2012 gross domestic product growth outlook to minus 0.2% from minus 0.1%, in its monthly report published earlier, as downside risks remain to the economic outlook.
Earlier in the day, official data showed that French industrial production fell more-than-expected in March, declining 0.9% after a 0.9% rise the previous month. Analysts had expected industrial production to fall 0.4% in March.
The greenback was higher against the pound, with GBP/USD falling 0.10% to hit 1.6112.
Sterling found some support after official data showed that manufacturing production in the U.K. rose more-than-expected in March, adding 0.9% after a 1.1% decline the previous month. Analysts had expected manufacturing production to rise 0.5% in March.
But investors remained cautious ahead of the release of the Bank of England’s rate decision later in the day.
Elsewhere, the greenback was higher against the yen but lower against the Swiss franc, with USD/JPY inching up 0.10% to hit 79.72 and USD/CHF retreating 0.16% to hit 0.9275.
The greenback was lower against its Canadian, Australian and New Zealand counterparts, with USD/CAD declining 0.11% to hit 1.0015, AUD/USD rising 0.53% to hit 1.0103 and NZD/USD adding 0.40% to hit 0.7871.
The Australian dollar rallied earlier after official data showed that Australia’s unemployment rate fell unexpectedly to 4.9% from 5.2% in March. Analysts had expected the unemployment rate to rise to 5.3% in April.
Commodity-related currencies remained under pressure however, as data showed earlier that Chinese exports and imports in April were well below analysts’ expectations.
In a report, the Customs General Administration of China said the nation’s trade surplus widened to USD18.42 billion in April from USD5.35 in the previous month.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, eased 0.02%, to hit 80.23.
Later in the day, the U.S. was to release official data on trade balance, followed by government reports on unemployment claims and import prices. Federal Reserve Chairman Ben Bernanke was also due to speak.