Forex - Dollar higher as Spain auction ahead
Investing.com
Published Jun 07, 2012 04:40AM ET
During European morning trade, the euro was lower against the U.S. dollar, with EUR/USD slipping 0.16% to hit 1.2560.
Sentiment on the euro weakened after the European Central Bank kept rates on hold on Wednesday and held back from announcing any fresh monetary easing, disappointing hopes that the bank would implement fresh measures to help stabilize markets.
Investors were also wary ahead of an auction of Spanish government debt later in the day, just days after the country warned that it is having difficulty accessing credit markets.
The greenback was also marginally higher against the pound, with GBP/USD losing 0.10% to hit 1.5479.
The Markit/CIPS U.K. services purchasing managers' index came in at 53.3 in May, defying expectations for a decline to 52.7 and unchanged from the previous months reading.
Elsewhere, the greenback was higher against the yen, with USD/JPY rising 0.19% to hit 79.33, and gained ground against the Swiss franc, USD/CHF up 0.18% to hit 0.9561.
In Switzerland, government data showed that consumer price inflation was flat in May, against expectations for a 0.1% increase.
The greenback was mixed against its Canadian, Australian and New Zealand counterparts, with USD/CAD inching up 0.03% to hit 1.0278, AUD/USD gaining 0.20% to hit 0.9947 and NZD/USD dipping 0.06% to hit 0.7701.
The Australian dollar strengthened earlier after official data showed the country’s economy added 38,900 jobs in May, beating expectations for a 2,200 decline and following a 7,000 rise the previous month.
Australia’s unemployment rate ticked up to 5.1% from April’s 5.0% reading, in line with expectations.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.10%, to trade at 82.35.
Market participants were looking ahead to testimony by Federal Reserve Chairman Ben Bernanke on the outlook for the U.S. economy later in the day, amid speculation that the U.S. central bank is mulling new measures to stimulate growth.
The U.S. was to also release government data on initial jobless claims.
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Written By: Investing.com
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