Forex - Dollar mixed against rivals as markets grope for direction

Published 09/27/2010, 11:59 AM
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Investing.com – The U.S. dollar was mixed against the other major currencies amid volatile trade on Monday, as markets sought direction amid a dearth of economic data.

During European afternoon trade, the greenback was up against the euro, with EUR/USD shedding 0.12% to hit 1.3488.

Earlier in the day, the European Central Bank reported that euro zone M3 money supply grew more-than-expected in August, expanding at its fastest pace in almost one year, while private sector loan growth jumped to its strongest level in 14 months.

But the greenback was down against the pound, with GBP/USD gaining 0.22% to hit 1.5861.

Earlier Monday, the U.K. Confederation of Business Industry said that while third quarter growth in the country's banking sector was the fastest since June 2007 it was still below expectations.

Elsewhere, the greenback was also down against the yen and the Swiss franc with USD/JPY shedding 0.04% to hit 84.18 and USD/CHF slipping 0.05% to hit 0.9829.

Earlier Monday, Bank of Japan Governor Masaaki Shirakawa said that the bank would continue to closely monitor the impact of the strong yen on Japan's economy.

But the greenback was up against its Canadian and New Zealand counterparts, with USD/CAD climbing 0.31% to hit 1.0270 and NZD/USD shedding 0.11% to hit 0.7350.

Meanwhile, the greenback was down against its Australian counterpart, with AUD/USD gaining 0.32% to hit 0.9623.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.09%.

Also Monday, economist Nouriel Roubini, famous for forecasting the credit crisis, warned that the U.S. economy could descend into a second recession. He also said that second-quarter GDP figures for the U.S. were likely to be revised down after “awful” June housing data.

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