Forex - Dollar gains ahead of key U.S. data, BoJ meeting

Published 10/28/2012, 10:16 PM
Updated 10/28/2012, 10:17 PM
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Investing.com - The dollar traded higher against most major currencies on Monday, as investors snapped up safe-haven greenback positions to brace for U.S. unemployment data due out later this week as well as the Bank of Japan's latest decision on interest rates and monetary policy.

Fears Greece may run into hurdles securing its next tranche of bailout money sparked the risk-off session as well.

In Asian trading on Monday, EUR/USD was down 0.09% at 1.2928.

The Bureau of Labor Statistics will release its October jobs report on Friday, the last such report before November's U.S. presidential elections, which prompted investors to sell higher-yielding assets and wait out the last full week of the presidential race in the safety of the greenback.

Japan, meanwhile, is to release data on unemployment, household spending and industrial production this week, though investors were keeping a close eye on the Bank of Japan, which will announce its latest decision with interest rates and monetary policy on Tuesday.

Uncertainty out of Europe bolstered the U.S. currency as well.

Greece has asked for a two-year extension to push through austerity measures in exchange for financial assistance.

The country risks running out of money in mid-November, and members of the ruling coalition have balked at wage reforms, fueling fears Athens is digging its heels in amid negotiations with its troika of lenders, the International Monetary Fund, the European Central Bank and the European Commission.

Fears the European debt crisis will reheat in Greece fueled the risk-off session as well.

Investors also parked themselves in dollar positions ahead of German inflation data due out later Monday and unemployment numbers due out on Tuesday.

The greenback, meanwhile, was up against the pound, with GBP/USD trading down 0.10% at 1.6090.

The dollar was up against the yen, with USD/JPY trading up 0.08% at 79.71 and up against the Swiss franc, with USD/CHF trading up 0.03% at 0.9350.

The dollar was up against its cousins in Canada, Australia and New Zealand, with USD/CAD trading up 0.14% at 0.9984, AUD/USD down 0.08% at 1.0366 and NZD/USD trading down 0.15% at 0.8216.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.08% at 80.17.

Later Monday, the U.S. will release government data on personal income, personal spending and core consumer inflation.









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