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Forex - Dollar mixed as risk aversion rises after U.S. ISM data

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Forexpros - The U.S. dollar was mixed against its major counterparts on Wednesday, as the release of mixed U.S. economic data added to the general risk adverse mood, while the Swiss franc trimmed losses, as the effects of measures by the Swiss National Bank to curb the currency's gains appeared temporary.

During U.S. morning trade, the greenback was lower against the euro, with EUR/USD rising 0.63% to hit 1.4290.

European Commission President Jose Manuel Barroso said earlier that a surge in Italian and Spanish bond yields to 14-year highs was a cause for deep concern and did not reflect the true state of the third and fourth largest economies in the currency area.

The greenback was also down against the pound, with GBP/USD climbing 0.68% to hit 1.6407.

Earlier in the day, a report showed that U.K. service sector activity rose unexpectedly in July.

Elsewhere, the greenback was lower against the yen and trimmed losses against the Swiss franc, with USD/JPY shedding 0.31% to hit 76.90 and USD/CHF up 0.53% to hit 0.7663.

The Swiss franc weakened after Switzerland's central bank narrowed its three-month Libor rate to 0.25% from 0.75% earlier, saying the currency was "massively overvalued."

Meanwhile, investors remained wary of a possible intervention by Japanese officials after Bank of Japan Governor Masaaki Shirakawa said that the yen's recent gains posed a threat to Japan's largely export based economy.

Elsewhere, the greenback was higher against its Canadian, Australian and New Zealand cousins, with USD/CAD gaining 0.23% to hit 0.9635, AUD/USD shedding 0.64% to hit 1.0709 and NZD/USD dropping 0.60% to hit 0.8611.

Earlier Wednesday, official data showed that Australian retail sales declined unexpectedly in June, while the country's trade surplus contracted more-than-expected.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.56%.

The Institute for Supply Management said its services index fell to 52.7 last month from 53.3 in June. Analysts had forecast a reading of 53.6.

Separately, payroll processing firm ADP said private sector employment rose by a seasonally adjusted 114,000 in July, above expectations for an increase of 100,000.

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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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