Forex - Dollar in tight range as markets await Bernanke

Published 08/30/2012, 08:41 AM
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Investing.com - The U.S. dollar was moving in a narrow range against the other major currencies on Thursday, as investors anticipated a speech by Federal Reserve Chairman Ben Bernanke on Friday.

During European afternoon trade, the dollar was slightly lower against the euro, with EUR/USD easing up 0.17% to 1.2551.

Investors remained cautious ahead of Bernanke’s speech at a symposium in Jackson Hole, Wyoming, amid ongoing speculation over how close the Fed may be to implementing more economic stimulus measures.

The dollar showed little reaction to data showing that the number of people who filed for unemployment assistance in the U.S. last week held steady at 374,000, compared to expectations for a decline of 4,000 to 370,000.

In the euro zone, Italy saw borrowing costs ease at an auction of five and 10-year bonds earlier, reflecting expectations that the European Central Bank is working on measures to help stabilize the euro zone's sovereign debt markets ahead of its upcoming meeting on September 6.

The greenback was lower against the pound, with GBP/USD rising 0.18% to 1.5861.

In the U.K., official data showed that net lending to individuals increased by GBP0.9 billion in July, below expectations for a GBP1.1 billion increase.

A separate report showed that U.K. mortgage approvals rose to 47,000 in July, in line with expectations, coming off June’s 18-month low of 44,000.

Elsewhere, the greenback was lower against the yen and the Swiss franc, with USD/JPY slipping 0.20% to 78.55 and USD/CHF losing 0.18% to trade at 0.9568.

The greenback was mixed against its Canadian, Australian and New Zealand counterparts, with USD/CAD up 0.20% to 0.9913, AUD/USD sliding 0.13% to trade at 1.0335 and NZD/USD edging up 0.09% to 0.8010.

In Canada, official data showed that the current account deficit expanded by a larger-than-forecast CAD5.9 billion to CAD16.0 billion in the second quarter, mainly on lower exports and higher imports of goods.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, slipped 0.13% to 81.46.

Also Thursday, Chinese Premier Wen Jiabao warned that the euro zone crisis is worsening, but added that China would to continue to buy euro zone government bonds after fully assessing risks.



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