Forex - Dollar mixed to lower amid euro zone fears

Published 01/09/2012, 04:57 AM
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Investing.com - The U.S. dollar was mixed to lower against its major counterparts on Monday, as market sentiment found mild support after relatively positive investor confidence data in the euro zone but gains were limited as concerns over the region’s debt crisis persisted.

During European morning trade, the dollar was lower against the euro, with EUR/USD rising 0.45% to hit 1.2776.

Data showed earlier that investor confidence in the euro zone for January improved more-than-expected, but remained in negative territory for the sixth consecutive month.

Market research group Sentix said its index of investor confidence improved to minus 21.1 in January from December’s reading of minus 24.0. Analysts had expected the index to improve to minus 23.5 in January.

On the index, a level above 0.0 indicates optimism, below indicates pessimism.

But concerns over rising borrowing costs in the euro zone continued, as investors looked ahead to government debt auctions by Spain and Italy later in the week.

The greenback was also fractionally lower against the pound, with GBP/USD adding 0.11% to hit 1.5443.

Elsewhere, the greenback was down against the yen and the Swiss franc, with USD/JPY declining 0.10% to hit 76.88 and USD/CHF falling 0.37% to hit 0.9516.

Earlier in the day, official data showed that retail sales in Switzerland rose significantly more-than-expected in November, surging 1.8% after a 0.1% increase the previous month.

Analysts had expected retail sales to rise 0.6% in November.

Markets in Japan remained closed for a national holiday.

The greenback was also lower against its counterparts in Canada and New Zealand but fractionally higher against its Australian cousin with USD/CAD retreating 0.06% to hit 1.0277, AUD/USD edging down 0.02% to hit 1.0227 and NZD/USD climbing 0.57% to hit 0.7851.

In Australia, official data showed earlier that retail sales were unexpectedly flat in November after a 0.2% rise the previous month. Analysts had expected retail sales to rise 0.4% in November.

Meanwhile, official data showed that New Zealand’s trade deficit widened more-than-expected in November, hitting NZD308 million from a deficit of NZD228 million the previous month.

Analysts had expected the trade deficit to hit NZD290 million in November.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, fell 0.27% to hit 81.40.

Later Monday, French President Nicolas Sarkozy and German Chancellor Angela Merkel were to discuss proposals to increase fiscal coordination in the single currency bloc.


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