Forex - Dollar gives up early gains on fresh Greece hopes

Published 02/01/2012, 04:45 AM
EUR/USD
-
GBP/USD
-
USD/JPY
-
USD/CHF
-
AUD/USD
-
USD/CAD
-
NZD/USD
-
Investing.com - The U.S. dollar gave up early gains against its major counterparts on Wednesday, as risk appetite sharpened after a senior International Monetary Fund official said talks on a Greek loan program will be concluded in the coming days.

During European morning trade, the dollar was lower against the euro, with EUR/USD rising 0.23% to hit 1.3115.

The euro found support after the head of the IMF mission to Athens told a Greek daily newspaper that talks on a fresh bailout for the country will be finalized within a matter of days.

Earlier in the week, Greek officials indicated that separate negotiations with the country’s private creditors were very close to being concluded, but concerns have persisted that the debt swap deal will not go far enough to reduce the country’s debt load.

An agreement is necessary for Greece to secure its next tranche of bailout funds in order to avoid a default when a EUR14.5 billion bond repayment comes due on March 20.

The greenback was also lower against the pound, with GBP/USD easing up 0.11% to hit 1.5776.

In the U.K., data showed that the manufacturing sector expanded at the fastest pace in eight months in January, as output grew at the fastest rate in 10 months and new orders rose.

The greenback was trading close to a three-month low against the yen, with USD/JPY shedding 0.28% to hit 76.04, fanning concerns over the risk of an intervention by Japanese authorities to curb the appreciation of the yen.

The greenback was also lower against the Swiss franc, with USD/CHF sliding 0.27% to hit 0.9174.

Earlier in the day, official data showed that Swiss retail sales rose less-than-expected in December.

A separate report showed that manufacturing activity in Switzerland unexpectedly deteriorated in January, contracting for the fourth consecutive month.

In addition, the greenback was weaker against its Canadian, Australian and New Zealand cousins, with USD/CAD down 0.30% to hit 0.9993, AUD/USD adding 0.49% to hit 1.0675 and NZD/USD gaining 0.26% to hit 0.8287.

In a speech earlier, Australian Prime Minister Julia Gillard warned exporters that the high level of the domestic currency was likely to continue in the long term.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.25% to hit 79.23.

Later in the day, the U.S. was to release a report on ADP non-farm payrolls, as well as a report by the Institute for Supply Management on manufacturing sector activity.


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.