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Markets

Dollar higher against euro, yen

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Investing.com - The U.S. dollar was higher against the euro and the yen on Wednesday, as investors remained cautious ahead of upcoming central bank meetings in the euro zone and U.K. and as expectations for more easing from the Bank of Japan remained intact.

During European late morning trade, the greenback edged higher against the euro, with EUR/USD slipping 0.09% to 1.3070.

The European Central Bank was widely expected to hold off cutting rates following Thursday's policy meeting, but some market participants expected the bank to flag the possibility of rate cuts later in the year.

The euro showed little reaction after final data showed that the euro zone economy contracted 0.1% in the third quarter, in line with preliminary estimates.

The dollar gained ground against the yen to re-approach last week's two-and-a-half year highs, with USD/JPY up 0.54% to 87.51.

The yen remained under pressure amid expectations that Japan's new government will pressure the BoJ to step up monetary easing in order to spur growth and combat deflation.

The greenback was almost unchanged against the pound, with GBP/USD dipping 0.01% to 1.6053.

In the U.K. official data showed that the trade deficit narrowed to GBP9.2 billion last month from GBP9.4 billion in October, as exports outpace imports. Analysts had forecast a deficit of GBP9.1 billion.

The greenback eased higher against the Swiss franc, with USD/CHF inching up 0.10% to 0.9250.

The greenback was little changed against its Canadian, Australian and New Zealand counterparts, with USD/CAD easing up 0.07% to 0.9873, AUD/USD inching up 0.01% to 1.0503 and NZD/USD edging up 0.02% to 0.8367.

The Australian dollar came under pressure earlier in the day after official data showed that Australian retail sales fell 0.1% in November, disappointing expectations for a 0.3% increase.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.19% to 80.56.

Later Wednesday, the U.S. was to publish official data on crude oil stockpiles.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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