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Forex - Dollar broadly lower ahead of busy central bank week

Published 07/28/2013, 09:22 PM
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Investing.com - The U.S. dollar traded lower against nearly all of its major rivals during Monday’s Asian session as traders prepare for what could be a volatile week in the currency markets ahead of important commentary from global central banks.

In Asian trading Monday, EUR/USD rose 0.06% to 1.3288. The euro gained almost 1% against the greenback last week after after data showed that the Ifo index of German business climate ticked up to 106.2 in July from 105.9 In June, slightly better than expectations for a reading of 106.1.

Earlier in the week, data showed that the euro zone composite purchasing managers’ index rose to 50.4 in the current month from 48.7 in June, on the back of stronger data from Germany and France.

USD/JPY fell 0.27% to 98.04, a move that pressured Japanese equities in the process. The yen has been rising in recent sessions as tepid U.S. data has fueled demand for safe-have currencies beyond the greenback.

In U.S. economic news out last Friday, the Thomson Reuters/University of Michigan final index of consumer sentiment for July rose to 85.1 from 84.1 last month. Economists expected a July reading of 84. The initial July reading was 83.9

Last Thursday, the U.S. Labor Department said initial claims for jobless benefits rose by 7,000 to 343,000 last week. Economists expected a reading of 340,000 new claims. The unemployment rate among people eligible for benefits dropped to 2.3 percent in the week ended July 13 from 2.4 percent the prior week, according to Bloomberg.

GBP/USD rose 0.06% to 1.5395 while USD/CHF fell 0.08% to 0.9277. USD/CAD dropped 0.08% to 1.0270 even as oil prices traded slightly lower.

AUD/USD inched up 0.04% to 0.9267 after China’s National Bureau of Statistics said Friday that profits at Chinese industrial firms rose 6.3% in June.

NZD/USD rose 0.05% to 0.8087 on the same news. China is the largest export market for Australia and New Zealand.

The U.S. Dollar Index fell 0.11% to 81.68.


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