Investing.com - The U.S. dollar traded higher against most of its major rivals during Wednesday’s Asian session despite fears that the world’s largest economy is inching closer to its first ever sovereign debt default.
In Asian trading Wednesday, EUR/USD inched down 0.02% to 1.3571 after the International Monetary Fund said it expected the euro zone economy to contract by 0.4% this year, less than 0.5% it forecast in July. It left its 2014 growth forecast unchanged at 1%.
Also Tuesday, data showed that German factory orders unexpectedly fell 0.3% in August following a 1.9% drop in July. Analysts had been expecting a gain of 1.2%.
USD/JPY rose 0.32% to 97.19, perhaps a sign that traders are embracing the dollar as a safe-haven again over the yen. No country has seen credit default swaps on its sovereign as much in the past 90 days as the U.S. has, indicating some traders do not think its foregone conclusion the world’s largest economy will avoid its first ever default.
GBP/USD inched down 0.02% to 1.6082 after the IMF said it now expects the U.K. economy to expand by 1.4% this year, up from 0.9% and sees growth of 1.9% in 2014, up from its July forecast of 1.5%. Sterling has recently been one of the top-performing developed market currencies against the green back.
USD/CHF climbed 0.18% to 0.9056 while USD/CAD nudged up 0.03% to 1.0373. Congressional Democrats and Republicans have shown almost no willingness to negotiate a budget deal, stoking fears the government will remain shuttered through the deadline to extend the debt ceiling, which is October 17.
AUD/USD inched down 0.02% to 0.9423 despite media reports that President Barrack Obama will nominate Federal Reserve Vice Chairwoman Janet Yellen to lead the U.S. central bank when Chairman Ben Bernanke retires early next year.
Yellen’s more dovish monetary policy was a potential source of help for riskier currencies, but it appears news of her nomination may have already been priced into AUD/USD.
NZD/USD fell 0.12% to 0.8280 while the U.S. Dollar Index gained 0.12% to 80.17.
In Asian trading Wednesday, EUR/USD inched down 0.02% to 1.3571 after the International Monetary Fund said it expected the euro zone economy to contract by 0.4% this year, less than 0.5% it forecast in July. It left its 2014 growth forecast unchanged at 1%.
Also Tuesday, data showed that German factory orders unexpectedly fell 0.3% in August following a 1.9% drop in July. Analysts had been expecting a gain of 1.2%.
USD/JPY rose 0.32% to 97.19, perhaps a sign that traders are embracing the dollar as a safe-haven again over the yen. No country has seen credit default swaps on its sovereign as much in the past 90 days as the U.S. has, indicating some traders do not think its foregone conclusion the world’s largest economy will avoid its first ever default.
GBP/USD inched down 0.02% to 1.6082 after the IMF said it now expects the U.K. economy to expand by 1.4% this year, up from 0.9% and sees growth of 1.9% in 2014, up from its July forecast of 1.5%. Sterling has recently been one of the top-performing developed market currencies against the green back.
USD/CHF climbed 0.18% to 0.9056 while USD/CAD nudged up 0.03% to 1.0373. Congressional Democrats and Republicans have shown almost no willingness to negotiate a budget deal, stoking fears the government will remain shuttered through the deadline to extend the debt ceiling, which is October 17.
AUD/USD inched down 0.02% to 0.9423 despite media reports that President Barrack Obama will nominate Federal Reserve Vice Chairwoman Janet Yellen to lead the U.S. central bank when Chairman Ben Bernanke retires early next year.
Yellen’s more dovish monetary policy was a potential source of help for riskier currencies, but it appears news of her nomination may have already been priced into AUD/USD.
NZD/USD fell 0.12% to 0.8280 while the U.S. Dollar Index gained 0.12% to 80.17.