Forex - Dollar gains as euro sold for profits

Published 01/20/2012, 03:57 PM
Updated 01/20/2012, 04:01 PM
EUR/USD
-
USD/JPY
-
USD/CHF
-
AUD/USD
-
USD/CAD
-
NZD/USD
-
Investing.com - The dollar firmed against major currencies Friday as investors decided the euro had posted enough gains in recent sessions to merit profit-taking, which sparked more broader demand for the greenback.  

Market watchers were also getting a little anxious to see some sort of announcement emerge from debt negotiation talks between the Greek government and a group of private creditors.
 
The dollar on Friday rose against the euro, with EUR/USD falling 0.29% and trading at 1.2932.
 
The Greek government must come to terms on how to restructure its debt with private creditors.
 
Failure to do so may mean Athens will be unable to tap fresh bailout money and won't avoid defaulting on a EUR14.4 billion bond redemption coming due on March 20.
 
While fears of such a scenario weren't gripping foreign-exchange markets Friday, desires for an end to negotiations and a beginning for more concrete workout plans are building.
 
"People are trimming just a bit of long-euro exposure into the weekend, given the Greek private sector involvement," said Alan Ruskin, global head of Group-of-10 foreign-exchange strategy at Deutsche Bank AG in New York, according to Bloomberg.

Meanwhile in the U.K. retail sales came in line with expectations, rising 0.6% in December, while a U.S. National Association of Realtors report showed that December existing home sales rose 5% to a seasonally adjusted annual rate of 4.61 million units, which fell short of market expectations for 4.65 million.

The dollar, therefore, was weaker against the pound, with Cable rising 0.43% to hit 1.5555.
 
The greenback was down 0.20% against the yen, with USD/JPY trading at 76.95, and up against the Swiss franc, with USD/CHF rising 0.26% to 0.9345.
 
The greenback was mixed against its cousins in Canada, Australia and New Zealand, with USD/CAD rising 0.23% to 1.0132, AUD/USD up 0.65% to 1.0487 and NZD/USD up 0.38% at 0.8060.
 
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.11% at 80.36.
 
Investors will keep a close eye on the Greek debt restructuring talks over the weekend and next week, the Federal Reserve Open Market Committee will meet to discuss the future of U.S. monetary policy.
 
Talk or even hints of loose policies such as quantitative easing, which are asset purchases from banks with freshly minted money, could move markets worldwide.

On Sunday, Japan will release trade balance figures, while Australia will unveil producer price data.
 
European consumer confidence numbers come out on Monday, while the Bank of Japan will hold a monetary policy meeting as well.
 




 

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.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.