Forex - U.S. dollar lower on euro optimism, Swiss banker resignation

Published 01/09/2012, 03:27 PM
Updated 01/09/2012, 03:29 PM
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Investing.com - The U.S. dollar fell against its major counterparts on Monday as the Franco German leader meeting sparked euro zone optimism and Swiss Central Bank head Philippe Hildebrand resigned.  

During early session U.S. trade, the greenback traded lower  against the euro, with EUR/USD gaining 0.32% to hit 1.2759.  

The single currency was lifted as German Chancellor Angela Merkel stated that her meeting with French President Sarkozy provided hope that leaders could sign off on a fiscal pact designed to solve the regions debt crisis.  

However, Merkel warned Greece that it would be impossible to provide additional aid without swift progress on its second rescue package that includes a write down on Greek debt from private creditors.  

Dollar bullish news from the U.S. Friday included a very positive NFP report indicating 200,000 new jobs created and a falling unemployment rate to 8.5%.
The U.S. dollar was down against the pound, with GBP/USD adding 0.10% to hit 1.5442.  

Philippe Hildebrand's resignation from Chairman of the Swiss Central Bank was caused by controversy over a currency trade supposedly made by his wife just weeks prior to the central bank imposing a minimum exchange rate on the franc against the euro.    

Last week, The Institute for Supply Management stated that its nn manufacturing purchasing manager's index only climbed 0.6 points in December, missing analyst's estimates of 1.0 points.  

The greenback was lower against the yen and Swiss franc with USD/JPY off by 0.15% to 76.85 and USD/CHF slipping 0.50% to hit 0.9504.  

In addition the greenback was lower against its Canadian, Australian and New Zealand cousins with USD/CAD dropping  0.43% to hit 1.0239, AUD/USD gaining .09% to hit 1.0238 and NZD/USD  adding 0.89% to 0.7876.  

The Aussie dollar remained relatively weak on a report showing flat domestic retail sales missing estimates.  

Building permits in Canada fell more than expected in November after soaring in October.  

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, gave back 0.34% to hit 81.33.  

Investors are awaiting French production figures on Tuesday.








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