Cyber Monday Deal: Up to 60% off InvestingProCLAIM SALE

Forex - Dollar steady vs. rivals as euro woes support

Published 12/15/2011, 04:47 AM
EUR/USD
-
GBP/USD
-
USD/JPY
-
USD/CHF
-
AUD/USD
-
USD/CAD
-
NZD/USD
-
Investing.com - The U.S. dollar was steady against its major counterparts on Thursday, trimming some gains from the previous day’s safe haven rally but the greenback remained supported amid ongoing worries over the debt crisis in the euro zone.

During European morning trade, the dollar was slightly higher against the euro, with EUR/USD slipping 0.14% to hit 1.2964.

Sentiment on the single currency remained fragile amid fears over mass ratings cuts across the euro zone after last Friday’s European Union summit failed to result in any decisive measures to tackle the debt crisis.

On Wednesday, Italy was forced to pay euro-era high yields at an auction of five-year bonds.

Investor attention turned to an auction of Spanish government debt later in the day, as well as a speech by European Central Bank President Mario Draghi.

Meanwhile, a report earlier showed that manufacturing activity in Germany rose unexpectedly in December, rebounding from the previous month’s 28-month low, but remained in contraction territory for the third consecutive month.

The greenback was almost unchanged against the pound, with GBP/USD dipping 0.02% to hit 1.5471.

In the U.K., official data showed that retail sales fell more-than-expected in November, as consumers reined in spending.

Elsewhere, the greenback was down against the yen and the Swiss franc, with USD/JPY sliding 0.12% to hit 77.97, and USD/CHF tumbling 0.82% to hit 0.9455.

Earlier Thursday, the Swiss National Bank kept its minimum exchange rate target of 1.20 per euro unchanged and reiterated its pledge to defend the level with the "utmost determination."

The central bank warned of a highly uncertain global economic outlook, saying that a further escalation of the debt crisis in the euro zone could not be ruled out. The SNB also kept its key interest rate close to zero.

In addition, official data showed that industrial production in Switzerland declined more-than-expected in the third quarter.

In contrast, the greenback was up against its Canadian, Australian and New Zealand cousins, with USD/CAD rising 0.10% to hit 1.0404, AUD/USD shedding 0.29% to hit 0.9880 and NZD/USD falling 0.41% to hit 0.7472.

In Australia, a report earlier showed that inflation expectations slightly eased in December, while a separate report showed that new motor vehicle sales declined in November.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, inched up 0.04% to hit 81.28

Later in the day, the U.S. was to produce its weekly report on initial jobless claims, as well as government data on producer price inflation and manufacturing activity in Philadelphia and New York state.


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.