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Forex - Dollar down vs. most rivals after flurry of U.S. data

Published 12/23/2010, 11:21 AM
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Investing.com – The U.S. dollar was down against most of its major counterparts on Thursday, amid thin trade volume leading up to the Christmas weekend, following the release of a flurry of U.S. economic data, including a report on jobless claims, durable goods orders and personal spending.

During early U.S. trade, the greenback was up against the euro, with EUR/USD slumping 0.21% to hit 1.3071.

Earlier in the day, ratings agency Fitch downgraded Hungary’s debt and signaled it may cut the rating to junk. The ratings agency said that a lack of a coherent medium-term fiscal strategy undermined confidence in the country’s sustainability of public finances.

But the U.S. dollar was down against the pound, with GBP/USD adding 0.09% to hit 1.5399.

In an interview published in the Daily Telegraph on Thursday, Bank of England Markets Director Paul Fisher said that he expected U.K. interest rates to rise “to a normalized position” of about 5%, while adding that the possibility of an increase in quantitative easing by the central bank was less than what it was a year ago, “but it’s still not ruled out.”

Elsewhere, the U.S. dollar was down against the yen, but up against the Swiss franc, with USD/JPY tumbling 0.63% to hit 83.04, while USD/CHF soared 1.25% to hit 0.9639.

Meanwhile, the greenback was down against its Canadian, Australian and New Zealand counterparts, with USD/CAD falling 0.39% to hit 1.0094, AUD/USD jumping 0.52% to hit 1.0042 and NZD/USD surging 1.01% to hit 0.7476.

Earlier in the day, official data showed that New Zealand’s economy unexpectedly contracted in the third quarter, but the country’s Finance Minister Bill English said, “The recovery remains on track. I am quite confident the economy will build momentum in 2011 and beyond.”    

Also Thursday, official data showed that Canada’s economy grew less-than-expected in October.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was relatively unchanged, gaining 0.02%.

Earlier Thursday, a report from the U.S. Department of Labor showed that the number of individuals filing for initial jobless benefits in the week ended December 18 fell unexpectedly to a seasonally adjusted 420K. Analysts had expected initial jobless claims to rise to 424K.

Also Thursday, official data showed that U.S. core durable goods orders rose more-than-expected in November, rising by 2.4%, after falling by a revised 1.9% in October. Analysts had expected U.S. core durable goods orders to rise by 1.0% in November.

The report said that durable goods orders, which include transportation items, declined for the second consecutive month in November, falling by 1.3%, after falling by a revised 3.1% in October. Analysts had expected durable goods orders to fall by 1.0% in November.

Meanwhile, separate data showed that U.S. personal income rose more-than-expected, personal spending rose less-than-expected, while the core PCE price index rose in line with expectations in November.

Elsewhere, data showed U.S. new home sales in November rose less-than-expected, while the University of Michigan consumer sentiment index increased less-than-expected in December.


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