Forex - Dollar broadly lower vs. rivals amid Greek optimism

Published 02/13/2012, 07:30 AM
EUR/USD
-
GBP/USD
-
USD/JPY
-
USD/CHF
-
AUD/USD
-
USD/CAD
-
NZD/USD
-
Investing.com - The U.S. dollar remained lower against most of its major counterparts on Monday, as the approval by Greek lawmakers of a new austerity plan supported demand for riskier assets.

During European afternoon trade, the dollar was down against the euro, with EUR/USD rising 0.44% to hit 1.3256.

The euro found support after Greece’s parliament approved on Sunday a set of austerity measures, including cuts in private-sector wages, 15,000 public-sector job cuts and EUR3 billion in government-spending cuts this year alone.

Gains were limited, however, as Greece must still find a further EUR325 million of spending cuts and give binding assurances the plan will be implemented before Wednesday when euro zone finance ministers meet to decide on a new EUR130 billion bailout.

Earlier Monday, Germany Finance Minister Wolfgang Schaeuble said in an interview with a German newspaper that Greek promises on austerity measures are no longer good enough because so many vows have been broken.

The greenback was also lower against the pound, with GBP/USD adding 0.34% to hit 1.5809.

The greenback was almost unchanged against yen but lower against the Swiss franc, with USD/JPY edging up 0.03% to hit 77.63 and USD/CHF shedding 0.51% to hit 0.9119.

Official data showed earlier that Switzerland's producer price index was unexpectedly flat in January, after advancing for the first time in eight months in the preceding month, confounding expectations for a 0.2% increase.

Also Monday, preliminary data showed that Japan’s gross domestic product fell more-than-expected in the fourth quarter, ticking down 0.6% after a 1.4% rise the previous quarter.

Analysts had expected Japan’s GDP to fall 0.3% in the fourth quarter.

A separate report showed that Japanese tertiary industry activity rose more-than-expected in December, adding 1.4% after a 0.6% decline the previous month, surpassing expectations for a 0.9% rise.

Elsewhere, the greenback was lower against its Canadian, Australian and New Zealand counterparts, with USD/CAD slipping 0.30% to hit 0.9983, AUD/USD climbing 0.80% to hit 1.0758 and NZD/USD jumping 1.06% to hit 0.8354.

In Australia, official data showed earlier that home loans rose more-than-expected in December, climbing 2.3% after a 1.8% rise the previous month.

Analysts had expected home loans to rise 1.9% in December.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, slid 0.33% to hit 78.85.

Also Monday, Germany sold EUR3 billion of six-month bills at an average yield of 0.0761%, while Italy sold EUR8.5 billion of one-year bills at yields of 2.23%, down from 2.735% at a similar auction last month, plus another EUR3.5 billion of 127-day bills at just 1.5%, down from 1.64%.


Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.