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Forex - Dollar mixed as traders seek safe-havens

Published 05/01/2013, 09:07 PM
Updated 05/01/2013, 09:08 PM
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Investing.com - The U.S. dollar traded mixed against its major rivals during Thursday’s Asian session as traders look for safe-haven plays following a rocky day for U.S. equities Wednesday.

In Asian trading Thursday, EUR/USD inched lower by 0.03% to 1.3177 as traders eye the conclusion of the European Central Bank meeting later Thursday. The pair rose slightly in the U.S. after the Federal Reserve said stimulus tools currently in place will stay put, including the Fed's monthly USD85 billion bond-buying program, which weakens the greenback to encourage investing and job-demand.

The ECB has been under pressure to lower interest rates to stimulate the euro zone’s slack economy, but that rate cut may not materialize following Thursday’s meeting.

GBP/USD inched up 0.01% to 1.5559 after Markit said that its U.K. manufacturing purchasing managers’ index rose to a seasonally adjusted 49.8 from 48.6 in March, just below the 50 level that separates growth from contraction. Analysts had expected the index to tick down to 48.5.

USD/JPY fell 0.13% to 97.28 as traders look for a safe-haven alternative in addition to the greenback. The yen is often used in that regard, helping push the Japanese currency slightly higher Thursday.

USD/CHF was flat at 0.9275 while USD/CAD fell inched own 0.06% to 1.0079. In U.S. economic news, the ADP private sector payroll survey showed that job growth slowed to just 119,000 private sector jobs in April. ADP also slashed the March reading to 131,000 from 158,000. Economists expect the April jobs report, due out Friday, to show the addition of 148,000 jobs.

The Institute for Supply Management’s manufacturing index fell to 50.7% from 51.3% in March. Economists expected an April reading of 50.8%. The April reading was the lowest since December. Readings above 50 signal expansion.

With risk appetite low, AUD/USD fell 0.21% to 1.0257 while NZD/USD declined 0.11% to 0.8493. The U.S. Dollar Index inched up 0.05% to 81.68.


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