Investing.com - The greenback traded mixed against most major
currencies on Friday, buoyed by expectations for the Federal
Reserve to continue tapering its monthly bond-buying program though
lower as investors flocked to the yen amid a stock-market
U.S. trading on Tuesday, EUR/USD was down 0.11% at 1.3682.
Solid economic indicators out of Europe recently sent the single
currency to levels ripe for profit taking on Friday.
The euro zone's composite output index rose to a 31-month high
of 53.2 in January, up from a final reading of 52.1 in December,
according to industry data released Thursday, which bolstered the
Panic in global stock markets, the product of weak Chinese data
and fears that emerging markets are facing headwinds, sent
investors ditching high-yielding currencies on Friday.
A preliminary Chinese HSBC Manufacturing PMI released earlier
this week fell to 49.6 for January from 50.5 in December, missing
market calls for an uptick to 50.6.
A reading under 50 signifies contraction, and the numbers
spooked investors with concerns that emerging-market economies may
Investors fleeing risk in emerging markets avoided U.S. equities
as well and sought safety in the yen over the dollar, though the
greenback did see support on Fed expectations.
The Federal Reserve will meet next week to address monetary
policy, and markets were expecting monetary authorities to trim
USD10 billion from the U.S. central bank's USD75 billion monthly
bond-buying program, though the U.S. central bank will likely keep
its language on the dovish side.
The greenback was up against the pound, with GBP/USD down 0.81%
In the U.K. earlier, the British Bankers' Association said
mortgage approvals rose by GBP46,500 in December, less than the
expected 47,200 increase, after an upwardly revised 45,400 rise the
The dollar was down against the yen, with USD/JPY down 0.94% at
102.31, and down against the Swiss franc, with USD/CHF down 0.30%
The dollar was mixed against its cousins in Canada, Australia
and New Zealand, with USD/CAD down 0.27% at 1.1070, AUD/USD down
0.71% at 0.8706 and NZD/USD down 0.65% at 0.8248.
The dollar index, which tracks the performance of the greenback
versus a basket of six other major currencies, was up 0.03% at
offers an extensive set of professional tools for the financial
Read more News on Investing.com and download the new
Investing.com Stocks & Forex App