Forex - Dollar falls as market turns bullish on Europe

Published 01/30/2012, 09:58 PM
Updated 01/30/2012, 10:01 PM
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Investing.com - The greenback slid against major currencies on Tuesday as Australian and New Zealand dollars attracted investors who by mid-session trading determined that Europe had showed enough commitment to ending the debt crisis to warrant a little more risk.
 
The dollar reversed earlier gains against the euro on Tuesday, with EUR/USD rising 0.34% and trading at 1.3188.

Greece has yet to work out a restructuring deal with private lenders, and it needs to do so if it wants to tap fresh bailout funds in the near future.

Meanwhile in Europe, an economic summit convened where policymakers sought to address the debt crisis.

Greece has been close to reaching a settlement with its creditors in the past, but a deal has yet to be announced, although Greek Prime Minister Lucas Papademos has said his country is strongly committed to reaching an agreement.

Meanwhile, the dollar was down against the pound, with Cable rising 0.16% to hit 1.5734.

The greenback was down 0.09% against the yen, with USD/JPY trading at 76.28, and down against the Swiss franc, with USD/CHF falling 0.38% to 0.9135.

The greenback was down against its cousins in Canada, Australia and New Zealand, with USD/CAD down 0.12% at 1.0003, AUD/USD up 0.39% at 1.0640 and NZD/USD up 0.58% at 0.8240.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.29% at 79.00.

Later Tuesday, Japan will unveil housing starts figures, while in Australia, home sales data will emerge.

Switzerland will release a report by UBS on its consumptions indicator, a combined reading of five economic indicators.  

Germany will unveil official data on retail sales as well as data on employment changes.

Meanwhile, the eurozone will release its latest unemployment rates as well.

The U.S. is to produce government data on employment cost inflation, a key gauge of consumer inflation, followed by industry data on house price inflation and the purchasing managers’ index in Chicago.

The country is also to release data on consumer confidence.

Also in the U.S., the S&P/Case-Shiller House Price Index will release as well.






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