Forex - Dollar sharply higher on risk aversion

Published 09/22/2011, 08:02 AM
EUR/USD
-
GBP/USD
-
USD/JPY
-
USD/CHF
-
AUD/USD
-
USD/CAD
-
NZD/USD
-
Investing.com – The U.S. dollar remained sharply higher against almost all of its major counterparts on Thursday, as the Federal Reserve’s gloomy outlook for the U.S. economy sparked a sell-off of riskier assets.

During European afternoon trade, the greenback was up against the euro, with EUR/USD tumbling 0.81% to hit 1.3461.

Earlier in the day, data showed that German manufacturing output fell to a 24-month low in September, while manufacturing activity in the euro zone slumped to the lowest since August 2009.

A separate report showed that euro zone factory orders fell more-than-expected in July.

The greenback was also higher against the pound, with GBP/USD down 0.49% to hit 1.5419.

But the greenback was down against the yen, with USD/JPY sliding 0.20% to hit 76.30. In contrast, the greenback rallied against the Swiss franc, with USD/CHF jumping 1.30% to hit 0.9117.

Earlier Thursday, the ZEW Centre for European Economic Research said its index of Swiss economic sentiment fell for the fifth consecutive month in September, as a strong Swiss franc and concerns over the euro zone’s sovereign debt crisis weighed.

The greenback also posted large gains against its Canadian, Australian and New Zealand counterparts, with USD/CAD rallying 2.21% to hit 1.0304, AUD/USD tumbling 1.94% to hit 0.9847 and NZD/USD plunging 2.17% to hit 0.7839.

Earlier in the day, official data showed that New Zealand’s gross domestic product grew by 0.1% in the second quarter, after expanding by an upwardly revised 0.9% in the three months to March. Analysts had expected GDP to increase by 0.5% on the second quarter.

Elsewhere, data showed that Chinese factory output fell for a third consecutive month in September, adding to fears over a slowdown in global growth.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.69% to hit a seven-month high of 78.97.

Later in the day, the U.S. was to publish its weekly report on initial jobless claims.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.