Forex - Dollar gains as Draghi sees recovery later this year
Published Feb 08, 2013 03:15PM ET
In U.S. trading on Friday, EUR/USD was down 0.29% at 1.3359.
On Thursday, ECB President Draghi warned that economic weakness would stick around during the early part of 2013 and added recovery would kick in later in the year, which weighed on the euro against the dollar.
Draghi added that the euro's recent strengthening trend reflected a return of investor confidence in the eurozone.
Solid U.S. and Chinese trade data capped the greenback's gains as some traders took up equity positions.
The U.S. Commerce Department reported earlier that U.S. trade deficit in December narrowed to USD38.5 billion from a USD48.6 billion deficit in November.
Analysts were expecting the trade deficit to only narrow to USD46 billion.
Meanwhile in Asia, the Chinese trade surplus fell in January from December thanks to a surge in imports, fueling talk of an improving global economy.
The country's trade surplus hit USD29.20 billion last month, down from a USD31.60 billion surplus reported in December.
Analysts were expecting a USD22 billion surplus.
Elsewhere in Europe, E.U. leaders agreed on common budget cuts, the first ever.
The agreement should set a 2014-2020 spending ceiling of EUR960 billion, down from an original proposal of EUR1.047 trillion and less than the EUR994 billion spent in the current budget cycle.
The greenback, meanwhile, was down against the pound, with GBP/USD trading up 0.54% at 1.5797.
The dollar fell against the yen, with USD/JPY trading down 0.84% at 92.86 and down against the Swiss franc, with USD/CHF trading down 0.05% at 0.9187.
Japanese Finance Minister Taro Aso earlier said the yen's weakening trend was taking place too rapidly, which fueled demand for the Japanese currency on sentiments the government may allow the currency to depreciate at a slower pace.
The dollar was mixed against its cousins in Canada, Australia and New Zealand, with USD/CAD up 0.49% at 1.0027, AUD/USD up 0.34% at 1.0316 and NZD/USD trading up 0.17% at 0.8346.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.03% at 80.31.
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Written By: Investing.com
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