Black Friday is Now! Don’t miss out on up to 60% OFF InvestingProCLAIM SALE

Forex - Dollar edges higher amid caution ahead of EU summit

Published 10/24/2011, 09:18 AM
EUR/USD
-
GBP/USD
-
USD/JPY
-
USD/CHF
-
AUD/USD
-
USD/CAD
-
NZD/USD
-
Investing.com - The U.S. dollar edged higher against its major counterparts on Monday, amid uncertainty over whether Wednesday’s European Union summit would result in a breakthrough on tackling the worsening debt crisis in the euro zone.

During European afternoon trade, the greenback was up against the euro, with EUR/USD shedding 0.36% to hit 1.3845.

Earlier in the day, preliminary data showed that manufacturing activity in the euro zone slumped to a 27-month low in October. Service sector output in the single-currency bloc also declined to a 27-month low, adding to fears that the euro zone could be slipping into a recession.

EU leaders moved closer to an agreement on bank recapitalization on Sunday, while Germany and France neared an agreement on expanding the firepower of the euro zone’s bailout fund. But divisions over restructuring Greek debt remained and a final agreement was not expected until Wednesday’s meeting.

The greenback was also up against the pound, with GBP/USD sliding 0.21% to hit 1.5916.

Meanwhile, the greenback was lower against the yen but higher against the Swiss franc with USD/JPY slipping 0.17% to hit 76.14 and USD/CHF rising 0.51% to hit 0.8869.

Earlier Monday, Japan’s Finance Minister Jun Azumi reiterated warnings against speculators pushing the yen too high, after the currency surged to a record high against the dollar on Friday, saying Tokyo would take "decisive" steps if necessary.

The greenback was almost unchanged against its Canadian counterpart but was lower against its Australian and New Zealand cousins, with USD/CAD dipping 0.02% to hit 1.0064, AUD/USD adding 0.26% to hit 1.0403 and NZD/USD easing up 0.13% to hit 0.8042.

Official data released earlier showed that Australian producer price inflation fell more-than-expected in the third quarter, adding to speculation that the country's central bank could cut interest rates later this week.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.26% to hit 76.72.

Also Monday, a preliminary report showed that the Chinese HSBC manufacturing activity index rose to 51.1 in October, a five-month high, after contracting in the three previous months.

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.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.