Investing.com - The dollar slid against major global currencies early Thursday amid profit taking after investors earlier ran to the greenback in search of a safe harbor to ride out a deepening European debt crisis.
Credit ratings agencies have warned that sovereign bonds across the continent risked downgrades, including AAA-rated Germany, France, the Netherlands, Austria, Finland and Luxembourg.
Furthermore, at the end of U.S. trading, Fitch ratings said it had slapped downgrades on five European financial institutions, which include Banque Federative du Credit Mutuel, Credit Agricole, Danske Bank, OP Pohjola Group and Rabobank Group.
The banks, Fitch analysts wrote, were either directly exposed to European hot spots or exposed to a weaker economy that could result from the crisis.
Furthermore, yields in Italian and Spanish bond auctions continued to spike, illustrating eroding investor confidence in the southern European countries.
Even European countries that don't use the euro are suffering due to their proximity and trade ties.
In the U.K. high jobless rates fueled fears the continent's economy was teetering on the edge of recession.
The U.K. jobless rate hit a 17-year high in the three months ending October, with 2.64 million people out of work.
"The unemployment rate is the highest since 1996 and the number of unemployed people is the highest since 1994," the Office of National Statistics said in a statement.
During early Thursday trading, the greenback had cooled its rally against the euro, with EUR/USD up 0.05% and trading at 1.2990.
The greenback was down against the pound, with Cable trading at 1.5472.
Meanwhile, the greenback was down 0.01% against the yen, with USD/JPY was trading at 78.07, and up against the Swiss franc, with USD/CHF trading up 0.01% at 0.9534.
The greenback was mixed against currencies in Canada, Australia and New Zealand, with USD/CAD down 0.02% at 1.0392, AUD/USD sliding 0.27% to 0.9883 and NZD/USD slipping 0.39% to hit 0.7474.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, eased off a bit early in Thursday's session, dropping 0.04% at 81.22.
Later Thursday, the Swiss National Bank will decide to move on interest rates or leave them unchanged at 0.00%.
Retail sales out of the U.K. bear watching as well.
European Central Bank President Mario Draghi is due to speak in public later during the day, and any comments suggesting the monetary authority will play a greater role assisting debt-ridden periphery countries could boost the euro.
In the U.S. initial jobless claims are due and even though the economy remains fairly insulated from the European crisis thanks to measures taken to shore up the financial system back in 2008, the economy remains weak, and jobless claims will provide insight as to whether labor markets are firming or remaining stuck in recessionary mode.
Credit ratings agencies have warned that sovereign bonds across the continent risked downgrades, including AAA-rated Germany, France, the Netherlands, Austria, Finland and Luxembourg.
Furthermore, at the end of U.S. trading, Fitch ratings said it had slapped downgrades on five European financial institutions, which include Banque Federative du Credit Mutuel, Credit Agricole, Danske Bank, OP Pohjola Group and Rabobank Group.
The banks, Fitch analysts wrote, were either directly exposed to European hot spots or exposed to a weaker economy that could result from the crisis.
Furthermore, yields in Italian and Spanish bond auctions continued to spike, illustrating eroding investor confidence in the southern European countries.
Even European countries that don't use the euro are suffering due to their proximity and trade ties.
In the U.K. high jobless rates fueled fears the continent's economy was teetering on the edge of recession.
The U.K. jobless rate hit a 17-year high in the three months ending October, with 2.64 million people out of work.
"The unemployment rate is the highest since 1996 and the number of unemployed people is the highest since 1994," the Office of National Statistics said in a statement.
During early Thursday trading, the greenback had cooled its rally against the euro, with EUR/USD up 0.05% and trading at 1.2990.
The greenback was down against the pound, with Cable trading at 1.5472.
Meanwhile, the greenback was down 0.01% against the yen, with USD/JPY was trading at 78.07, and up against the Swiss franc, with USD/CHF trading up 0.01% at 0.9534.
The greenback was mixed against currencies in Canada, Australia and New Zealand, with USD/CAD down 0.02% at 1.0392, AUD/USD sliding 0.27% to 0.9883 and NZD/USD slipping 0.39% to hit 0.7474.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, eased off a bit early in Thursday's session, dropping 0.04% at 81.22.
Later Thursday, the Swiss National Bank will decide to move on interest rates or leave them unchanged at 0.00%.
Retail sales out of the U.K. bear watching as well.
European Central Bank President Mario Draghi is due to speak in public later during the day, and any comments suggesting the monetary authority will play a greater role assisting debt-ridden periphery countries could boost the euro.
In the U.S. initial jobless claims are due and even though the economy remains fairly insulated from the European crisis thanks to measures taken to shore up the financial system back in 2008, the economy remains weak, and jobless claims will provide insight as to whether labor markets are firming or remaining stuck in recessionary mode.