Forex - U.S. dollar lower on euro zone economic optimism

Published 01/19/2012, 02:25 PM
Updated 01/19/2012, 02:28 PM
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 Investing.com - The U.S. dollar traded mostly lower against its major counterparts Thursday, as euro zone debt auctions lifted economic optimism in the region.    

During late session U.S. trade, the greenback traded lower against the euro, with EUR/USD gaining 0.59% to hit 1.2940.  

The single currency gained support after French and Spanish debt auctions met with solid investor demand and lower yields  

Yesterday's news that Greece is near a deal with its private creditors which would provide the creditors cash and securities with a market value of approximately 32 cents per euro of government debt, increased the euro zone bullishness.  

In the U.K., a consumer confidence index dropped to 38 in December from 40 the precious month, nearly hitting October's low of 36, the lowest level since 2004.  

The greenback was also lower against the pound, with GBP/USD advancing 0.19% to hit 1.5469.  

The European Central Bank fueled the optimism by stating that it has a whole range of unconventional measures to manage the debt crisis.  

Meanwhile, initial U.S. jobless benefit claims plummeted 50,000 to 352,000 in the week ending January, 14th.  This crushed the median analyst's forecast of 384,000, increasing hopes that the world's largest economy continues to improve.    

Elsewhere, the greenback was higher against the yen but lower against  the Swiss franc with USD/JPY gaining 0.47% to 77.19 and USD/CHF giving back 0.68% to hit 0.9331.    

In addition the greenback was mixed against its Canadian, Australian and New Zealand cousins with USD/CAD dropping  0.06% to hit 1.0106, AUD/USD falling 0.26% to hit 1.0408 and NZD/USD giving back 0.24% to 0.8025.  

Earlier, an Australian report showed the economy lost 29,300 jobs in December, surprising analysts who expected a 10,000 job gain. However, the unemployment rate held steady at 5.2%  

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, gave back 0.39% to hit 80.36.  

Investors are awaiting German producer price numbers and the U.K. retail sales report, along with Australia's import price figures and U.S. existing home sales.







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