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Euro mixed against rivals as U.S. data eyed

Published 03/15/2012, 07:55 AM
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Investing.com - The euro was mixed against its global counterparts on Thursday, as the dollar remained broadly supported by the improving outlook for the U.S. economy and concerns over the debt crisis in the euro zone waned.
 
During European late morning trade, the euro edged higher against the U.S. dollar, with EUR/USD rising 0.21% to hit 1.3058.
 
The greenback remained supported after the Federal Reserve upgraded its outlook on the U.S. economy earlier this week, causing investors to trims back expectations for a third round of quantitative easing by the central bank.
 
The shared currency was also slightly higher against the pound, with EUR/GBP easing up 0.13% to hit 0.8324.
 
Sentiment on sterling was dented after ratings agency Fitch placed the U.K.’s triple-A credit rating on negative outlook late Wednesday, warning that there is a slightly greater than 50% chance of a downgrade in the next two years, if the government eases back on implementing harsh austerity measures.
 
Elsewhere, the euro retreated from a five-week high against the Swiss franc, with EUR/CHF shedding 0.25% to hit 1.2098, after the Swiss National Bank kept its minimum exchange rate floor of 1.20 per euro unchanged earlier.
 
In its quarterly monetary policy statement, the SNB reiterated its pledge to defend the exchange rate floor with the “utmost determination," saying it was ready to buy foreign currency in unlimited quantities.
 
The exchange rate cap was introduced last September as the appreciation of the Swiss franc undermined exports and increased the risk of deflation.
 
The central bank also said that there are increasing signs that the Swiss economy is stabilizing and doubled its forecast for economic growth for this year to "around 1.0%".
 
Against the yen, the euro was lower, with EUR/JPY sliding 0.18% to hit 108.91.
 
The shared currency was mixed against the Australian, New Zealand and Canadian dollars, with EUR/AUD sliding 0.39% to hit 1.2423, EUR/NZD falling 0.61% to hit 1.6002 and EUR/CAD rising 0.19% to hit 1.2958.
 
Later in the day, the U.S. was to release government data on producer price inflation, as well as official data on unemployment claims. The country was also to produce reports on manufacturing activity in New York and Philadelphia.


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