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Forex - Dollar slumps vs. rivals after raft of mixed U.S. data

Published 02/28/2011, 11:10 AM
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Investing.com – The U.S. dollar was broadly lower against its major counterparts on Monday, after a flurry of data painted a mixed picture of the U.S. economic recovery.

During European late afternoon trade, the greenback was down against the euro, with EUR/USD climbing 0.38% to hit 1.3806.

Earlier Monday, official data showed that final euro zone inflation rate for January came in slightly softer than the initial estimate but still accelerated at the fastest pace since October 2008, rising 2.3%.

The greenback was also down against the pound, with GBP/USD surging 0.88% to hit 1.6259.

However, the greenback climbed against the yen and the Swiss franc, with USD/JPY rising 0.29% to hit 81.92 and USD/CHF gaining 0.1% to hit 0.9292.

Meanwhile, the greenback was down against its Canadian, Australian and New Zealand counterparts, with USD/CAD dropping 0.37% to hit 0.9743, AUD/USD adding 0.07% to hit 1.0183 and NZD/USD easing up 0.02% to hit 0.7518.

Earlier in the day, official data showed that Canada’s economy expanded more-than-expected in the fourth quarter, supporting expectations the Bank of Canada will resume interest rate hikes in the first half of this year.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.44%.

Earlier in the day, the Commerce Department said consumer spending increased less-than-expected in January, rising 0.2% after increasing by a revised 0.5% the previous month. The slowdown in spending came even while personal income rose by 1.0%, the largest gain since May 2009.

Separate reports showed that while manufacturing activity in the Chicago area rose unexpectedly in February pending home sales in the U.S. fell more-than-expected in January, declining for the second consecutive month.


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