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Forex - Dollar lower vs. major rivals, Swissie surges on SNB

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Forexpros - The broadly weaker U.S. dollar was down against all of its major counterparts on Wednesday, as risk appetite firmed following the disappointing outcome of the previous day's Franco-German summit meeting, while the Swiss franc surged after the Swiss National Bank refrained from pegging the currency.

During U.S. morning trade, the greenback was down against the euro, with EUR/USD gaining 0.36% to hit 1.4460.

The euro found support amid speculation the European Central Bank was buying Italian and Spanish government debt, in an effort to ease pressure on the region's third and fourth largest economies.

Also Wednesday, official data showed that consumer price inflation in the euro zone held steady at 2.5% in July, while core CPI rose 1.2%.

The greenback was also lower against the pound, with GBP/USD climbing 0.64% to hit a three-month high of 1.6562.

The U.K. Office for National Statistics said earlier that the claimant count rose by a seasonally adjusted 37,100 in July, above expectations for an increase of 20,000.

Separately, minutes from the Bank of England's July policy-setting meeting showed that policy makers voted 9-0 to keep rates unchanged at a record low 0.5%.

Meanwhile, the greenback was down against the safe haven yen and Swiss franc, with USD/JPY falling 0.32% to hit 76.56 and USD/CHF slumping 0.4% to hit 0.7928.

The Swiss National Bank announced further measures to weaken the franc, but stopped short of pegging the currency to the euro or intervening directly in the currency market, as some had speculated in recent days.

Elsewhere, the greenback was lower against the risk-sensitive Australian, New Zealand and Canadian dollars, with AUD/USD climbing 0.94% to hit 1.0585, NZD/USD gaining 0.4% to hit 0.8395, while USD/CAD shed 0.21% to hit 0.9803.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.36% to hit 73.78.

Earlier Wednesday, official data showed that U.S. producer price inflation rose by 0.2% in July, above expectations for an increase of 0.1%.

Year-over-year, the producer price index rose at an annualized rate of 7.2% in July, higher than the expected 7.0% gain.

Core PPI, which excludes food and energy costs, rose by 0.4%, the largest monthly gain since January. Analysts had expected core PPI to rise by 0.2%.

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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.

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