Investing.com - The dollar rose against most major global currencies on Wednesday amid ongoing concerns that a bailout looms large for Spain.
In Asian trading on Wednesday, EUR/USD was up 0.05% at 1.2068, regaining some strength but only after touching a two-year low earlier.
Profit-taking sent the greenback edging downward at times in the session though the greenback largely maintained its upward trend.
The yield on Spanish 10-year bonds rose earlier to a euro-era high of 7.60%, well above the 7% threshold deemed unsustainable by the markets.
Eurozone policymakers recently allocated EUR100 billion for Spain to prop up its banking sector and regional governments as well, though markets quickly brushed off the good news and decided the country is suffering from too much debt and not enough growth as a whole, and will need a lifeline itself.
Disappointing output data pushed the euro down against the U.S. currency as well.
The Markit research group reported that its preliminary German manufacturing purchasing managers’ index dropped to 43.3 in July from a final reading of 45.0 in June.
Markets were expecting the index to increase to 45.3.
Meanwhile, Markit's manufacturing index for the eurozone as a whole contracted at its fastest pace since May 2009, dropping to 44.1 in July from 45.1 in June, below a 45.3 forecast.
Fears of a near European meltdown eclipsed otherwise positive output data out of China, where the country's HSBC manufacturing purchasing managers index jumped to 49.5 in July, its highest level since February, and up from a final reading of 48.2 in June.
A decision by the Moody's ratings agency to lower its outlooks for Germany, the Netherlands and Luxembourg to negative from stable also kept the greenback higher.
Japan, meanwhile, reported that its trade balance fell less than expected in June.
The Ministry of Finance said that the country’s trade balance fell to a seasonally adjusted -0.30T, from -0.62T in the preceding month whose figure was revised up from -0.66T.
Analysts had expected the trade balance to fall -0.39T last month.
Meanwhile in Australia, the consumer price index rose less than expected.
The Australian Bureau of Statistics reported that Australia's trimmed mean consumer price index rose to a seasonally adjusted 0.5% in the second quarter, up from 0.3% in the preceding quarter.
Analysts had expected Australian trimmed mean consumer price index to rise 0.6% in the last quarter.
Meanwhile, Australia's consumer price index was up 1.2% on year in the April-June quarter.
The greenback, meanwhile, was up against the pound, with GBP/USD trading down 0.03% at 1.5503.
The dollar was down slightly against the yen, with USD/JPY trading down 0.01% at 78.16, and down against the Swiss franc, with USD/CHF trading down 0.06% at 0.9952.
The dollar was mixed against its cousins in Canada, Australia and New Zealand, with USD/CAD down 0.02% at 1.0220, AUD/USD down 0.02% at 1.0218 and NZD/USD down 0.39% at 0.7816.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.04% at 84.11.
Later Wednesday, the U.S. will publish official data on new home sales, a leading indicator of economic health, as well as data on crude oil stockpiles.
In Asian trading on Wednesday, EUR/USD was up 0.05% at 1.2068, regaining some strength but only after touching a two-year low earlier.
Profit-taking sent the greenback edging downward at times in the session though the greenback largely maintained its upward trend.
The yield on Spanish 10-year bonds rose earlier to a euro-era high of 7.60%, well above the 7% threshold deemed unsustainable by the markets.
Eurozone policymakers recently allocated EUR100 billion for Spain to prop up its banking sector and regional governments as well, though markets quickly brushed off the good news and decided the country is suffering from too much debt and not enough growth as a whole, and will need a lifeline itself.
Disappointing output data pushed the euro down against the U.S. currency as well.
The Markit research group reported that its preliminary German manufacturing purchasing managers’ index dropped to 43.3 in July from a final reading of 45.0 in June.
Markets were expecting the index to increase to 45.3.
Meanwhile, Markit's manufacturing index for the eurozone as a whole contracted at its fastest pace since May 2009, dropping to 44.1 in July from 45.1 in June, below a 45.3 forecast.
Fears of a near European meltdown eclipsed otherwise positive output data out of China, where the country's HSBC manufacturing purchasing managers index jumped to 49.5 in July, its highest level since February, and up from a final reading of 48.2 in June.
A decision by the Moody's ratings agency to lower its outlooks for Germany, the Netherlands and Luxembourg to negative from stable also kept the greenback higher.
Japan, meanwhile, reported that its trade balance fell less than expected in June.
The Ministry of Finance said that the country’s trade balance fell to a seasonally adjusted -0.30T, from -0.62T in the preceding month whose figure was revised up from -0.66T.
Analysts had expected the trade balance to fall -0.39T last month.
Meanwhile in Australia, the consumer price index rose less than expected.
The Australian Bureau of Statistics reported that Australia's trimmed mean consumer price index rose to a seasonally adjusted 0.5% in the second quarter, up from 0.3% in the preceding quarter.
Analysts had expected Australian trimmed mean consumer price index to rise 0.6% in the last quarter.
Meanwhile, Australia's consumer price index was up 1.2% on year in the April-June quarter.
The greenback, meanwhile, was up against the pound, with GBP/USD trading down 0.03% at 1.5503.
The dollar was down slightly against the yen, with USD/JPY trading down 0.01% at 78.16, and down against the Swiss franc, with USD/CHF trading down 0.06% at 0.9952.
The dollar was mixed against its cousins in Canada, Australia and New Zealand, with USD/CAD down 0.02% at 1.0220, AUD/USD down 0.02% at 1.0218 and NZD/USD down 0.39% at 0.7816.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.04% at 84.11.
Later Wednesday, the U.S. will publish official data on new home sales, a leading indicator of economic health, as well as data on crude oil stockpiles.