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Forex - Dollar mixed amid jitters ahead of EU summit

Published 10/25/2011, 05:40 AM
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Investing.com - The U.S. dollar was mixed against its major counterparts on Tuesday, as uncertainty over the outcome of Wednesday’s key European Union summit meeting weighed on risk appetite.

During European morning trade, the greenback was fractionally lower against the euro, with EUR/USD inching up 0.05% to hit 1.3940.

Investors remained jittery ahead of Wednesday’s EU summit which it was hoped would result in a comprehensive plan to tackle the debt crisis in the euro zone.

Earlier Tuesday, a report showed that Germany's consumer climate outlook for November rose unexpectedly, but the economic outlook component of the index declined for the third month amid concerns over the debt crisis in the region.

But the greenback was slightly higher against the pound, with GBP/USD slipping 0.08% to hit 1.5982.

Official data earlier showed that the U.K.’s current account deficit unexpectedly contracted to GBP2.0 billion in the second quarter, narrowing from a deficit of GBP4.1 billion in the preceding quarter. Analysts had expected the deficit to widen to GBP 9.9 billion.

Meanwhile, the greenback edged higher against the yen but was lower against the Swiss franc with USD/JPY rising 0.07% to hit 76.16 and USD/CHF shedding 0.34% to hit 0.8777.

Japan’s Finance Minister Jun Azumi reiterated his warning against pushing the yen too high earlier, saying he was ready to take decisive steps if the currency's appreciation becomes excessive.

In Switzerland, a report showed that the UBS consumption indicator improved slightly in September, after falling sharply between June and August, as the Swiss National Bank’s intervention to weaken the franc last month eased concerns over the economic outlook.

Elsewhere, the greenback was lower against its Canadian counterpart but was higher against its Australian and New Zealand cousins, with USD/CAD sliding 0.15% to hit 1.0019, AUD/USD dipping 0.03% to hit 1.0471 and NZD/USD shedding 0.66% to hit 0.8019.

A report earlier showed that New Zealand’s consumer price inflation fell more-than-expected in the third quarter, dropping to 0.4% from 1.0% the previous quarter. Analysts had expected consumer price inflation to fall to 0.7% in the third quarter.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.12% to hit 76.25.

Later in the day, the U.S. was to publish industry data on house price inflation as well as a report on consumer confidence.


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