Forex – Dollar broadly higher vs. rivals as U.S. GDP data eyed

Published 11/23/2010, 08:13 AM
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Investing.com – The U.S. dollar was broadly higher against its major rivals on Tuesday, as risk aversion gripped markets amid concerns over euro zone sovereign debt and after a military skirmish on the Korean peninsula.

During European afternoon trade, the greenback was up against the euro, with EUR/USD tumbling 0.91% to hit 1.3502.

Political turmoil in Ireland stoked fears that the crisis which already engulfed Greece would spread to other indebted euro zone nations, such as Spain or Portugal.

Meanwhile, data released earlier in the day showed that Germany's Gfk index of consumer climate rose unexpectedly in November while growth in Europe’s services and manufacturing industries also rose unexpectedly during the month.

The greenback was also up against the pound with GBP/USD shedding 0.22% to hit 1.5922. Earlier Tuesday, the chairman of the U.K Financial Services Authority said that U.K. banks exposure to Irish debt was “not worrying”.

Meanwhile, the greenback was up against the yen but down against the Swiss franc, with USD/JPY rising 0.01% to hit 83.34 and USD/CHF slipping 0.07% to hit 0.9888.

Earlier Tuesday, media outlets in Seoul reported that North Korean artillery fired dozens of shells onto a South Korean island near the disputed sea border, prompting a return of fire by the South.

Elsewhere the greenback was up against its Canadian, Australian and New Zealand counterparts, with USD/CAD gaining 0.35% to hit 1.0221, AUD/USD plunging 1.01% to hit 0.9787 and NZD/USD tumbling 0.79% to hit 0.7657.

Also Tuesday, official data showed that Canadian consumer price inflation rose more-than-expected in October.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.58%.

Later Tuesday, the U.S. was to publish revised figures on third quarter GDP as well as data on existing home sales and manufacturing. In addition, the Federal Reserve was to publish the minutes of its November monetary policy meeting.


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