Investing.com – The U.S. dollar soared on Wednesday as investors fled its major counterparts on increased euro zone fears.
During late session U.S. trade, the greenback was higher against the euro, with EUR/USD off by 0.96 % to hit 1.2945.
The single currency was hit by a multitude of bearish factors despite a bullish Italian short term bond auction.
Light Christmas and New Years holiday volume added to the volatility as traders relaxed in preparation for 2012
Italy's Treasury short term bond auction was a bright spot but the optimism faded quickly as concern over Thursday's long term auction results escalated.
Adding to the euro negative sentiment, the use of the European Central Bank's overnight deposit facility reached an all time high of EUR452.03 billion on Tuesday. This added to fears that the ECB's crisis lending programs have not helped the banking sector.
In other news, the euro fell to a 10 year low against the yen on the ECB's growing balance sheet
The greenback was up against the pound, with GBP/USD plunging 1.29% to hit 1.5469.
Meanwhile, the greenback was higher against the yen and against the Swiss franc with USD/JPY higher by 0.11% to hit 77.96 and USD/CHF climbing 0.85% to hit 0.9420.
The greenback was higher against its Canadian neighbor and its Australian and New Zealand counterparts with USD/CAD climbing 0.26% to hit 1.0215, AUD/USD giving back 0.44 to hit 1.0112 and NZD/USD falling 0.29% to 0.7708.
Investors are awaiting the long term Italian bond auction and employment figures from the U.S. on Thursday.
During late session U.S. trade, the greenback was higher against the euro, with EUR/USD off by 0.96 % to hit 1.2945.
The single currency was hit by a multitude of bearish factors despite a bullish Italian short term bond auction.
Light Christmas and New Years holiday volume added to the volatility as traders relaxed in preparation for 2012
Italy's Treasury short term bond auction was a bright spot but the optimism faded quickly as concern over Thursday's long term auction results escalated.
Adding to the euro negative sentiment, the use of the European Central Bank's overnight deposit facility reached an all time high of EUR452.03 billion on Tuesday. This added to fears that the ECB's crisis lending programs have not helped the banking sector.
In other news, the euro fell to a 10 year low against the yen on the ECB's growing balance sheet
The greenback was up against the pound, with GBP/USD plunging 1.29% to hit 1.5469.
Meanwhile, the greenback was higher against the yen and against the Swiss franc with USD/JPY higher by 0.11% to hit 77.96 and USD/CHF climbing 0.85% to hit 0.9420.
The greenback was higher against its Canadian neighbor and its Australian and New Zealand counterparts with USD/CAD climbing 0.26% to hit 1.0215, AUD/USD giving back 0.44 to hit 1.0112 and NZD/USD falling 0.29% to 0.7708.
Investors are awaiting the long term Italian bond auction and employment figures from the U.S. on Thursday.