Investing.com - The U.S. dollar remained mixed to lower against its major counterparts on Thursday, amid political and financial turmoil in Greece as investors eyed the release of U.S. data later in the day for further signs of recovery of the country’s economy.
During European afternoon trade, the dollar was lower against the euro, with EUR/USD adding 0.23% to hit 1.2957.
Sentiment on the euro remained vulnerable after 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.
The report came after the leader of the leftist Syriza party, Alexis Tsipras, gave up attempts to form a new government on Wednesday, pushing the debt-stricken country closer to its second election in a few weeks and prompting European governments to withhold part of the latest tranche of rescue funds to be paid on Thursday.
Greek Socialist leader Evangelos Venizelos was to make a last attempt to form a government on Thursday, but chances seemed slim after both the conservatives and leftists tried and failed.
The greenback was also lower against the pound, with GBP/USD rising 0.24% to hit 1.6166.
The Bank of England kept its benchmark interest rate unchanged at a record low of 0.5%, in a widely expected move and announced no change to the size of its asset purchase facility which stands at GBP325 billion, following a GBP50 billion increase in February.
The announcement came after stronger-than-expected U.K. manufacturing production data, which showed the first increase in three months.
The U.K. Office for National Statistics said earlier that manufacturing production rose by 0.9% in March, beating expectations for a 0.5% increase. February’s figure was revised to a 1.1% decline from a previously reported drop of 1.0%.
Elsewhere, the greenback was higher against the yen but lower against the Swiss franc, with USD/JPY edging up 0.14% to hit 79.75 and USD/CHF retreating 0.20% to hit 0.9273.
The greenback was lower against its Canadian, Australian and New Zealand counterparts, with USD/CAD declining 0.39% to hit 0.9987, AUD/USD climbing 0.76% to hit 1.0126 and NZD/USD advancing 0.58% to hit 0.7885.
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, after data showed 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, edged down 0.11%, to hit 80.15.
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 afternoon trade, the dollar was lower against the euro, with EUR/USD adding 0.23% to hit 1.2957.
Sentiment on the euro remained vulnerable after 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.
The report came after the leader of the leftist Syriza party, Alexis Tsipras, gave up attempts to form a new government on Wednesday, pushing the debt-stricken country closer to its second election in a few weeks and prompting European governments to withhold part of the latest tranche of rescue funds to be paid on Thursday.
Greek Socialist leader Evangelos Venizelos was to make a last attempt to form a government on Thursday, but chances seemed slim after both the conservatives and leftists tried and failed.
The greenback was also lower against the pound, with GBP/USD rising 0.24% to hit 1.6166.
The Bank of England kept its benchmark interest rate unchanged at a record low of 0.5%, in a widely expected move and announced no change to the size of its asset purchase facility which stands at GBP325 billion, following a GBP50 billion increase in February.
The announcement came after stronger-than-expected U.K. manufacturing production data, which showed the first increase in three months.
The U.K. Office for National Statistics said earlier that manufacturing production rose by 0.9% in March, beating expectations for a 0.5% increase. February’s figure was revised to a 1.1% decline from a previously reported drop of 1.0%.
Elsewhere, the greenback was higher against the yen but lower against the Swiss franc, with USD/JPY edging up 0.14% to hit 79.75 and USD/CHF retreating 0.20% to hit 0.9273.
The greenback was lower against its Canadian, Australian and New Zealand counterparts, with USD/CAD declining 0.39% to hit 0.9987, AUD/USD climbing 0.76% to hit 1.0126 and NZD/USD advancing 0.58% to hit 0.7885.
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, after data showed 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, edged down 0.11%, to hit 80.15.
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.