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Forex - Dollar mixed ahead of French/Spanish bond auctions

Published 11/17/2011, 04:55 AM
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Investing.com - The U.S. dollar was mixed against its major counterparts on Thursday, as investors were jittery ahead of French and Spanish bond auctions later in the day.

During European morning trade, the dollar was up against the euro, with EUR/USD slipping 0.01% to hit 1.3457.

Spain was due to auction up to EUR4 billion of 10-year bonds and Madrid was expected to face its highest borrowing cost since the inception of the single currency.

Meanwhile, France was to auction up to EUR7 billion in government bonds after borrowing costs rose to a euro-era high on Wednesday.

Investors were also cautious after ratings agency Fitch warned about the potential adverse impact of euro zone’s debt crisis on the U.S. banking sector shortly after Moody’s downgraded the ratings of 12 German public-sector banks.

But the greenback was lower against the pound, with GBP/USD rising 0.10% to hit 1.5746.

Official data showed that U.K. retail sales rose unexpectedly in October, climbing 0.6% after a 0.5% rise the previous month. Analysts had expected retail sales to fall 0.2% in October.

A separate report showed that the Nationwide Building Society's index of U.K. consumer confidence fell to an all-time low in October.

Meanwhile, the greenback was lower against the yen and higher against the Swiss franc, with USD/JPY declining 0.07% to hit 76.99, and USD/CHF advancing 0.23% to hit 0.9217.

Earlier Thursday, the Bank of Japan said that the country's economic activity has continued picking up, but at a more moderate pace.

In its monthly report, the BoJ added that the value of the yen against the greenback remained at more or less the same levels as last month, easing speculation of a new intervention on the foreign exchange market.

Elsewhere, the greenback was higher against its Canadian, Australian and New Zealand counterparts, with USD/CAD rising 0.01% to hit 1.0244, AUD/USD falling 0.22% to hit 1.0059 and NZD/USD declining 0.18% to hit 0.7643.

In New Zealand, official data showed that producer price inflation input rose 0.6% in the third quarter, in line with expectations, after a 0.9% increase the previous quarter.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.02% to hit 78.52.

Later in the day, the U.S. was to release official data on initial jobless claims, building permits and housing starts and a report on manufacturing activity in the Philadelphia region.


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