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Forex - Dollar mixed vs. rivals as markets seek direction

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Forex Pros - The U.S. dollar was mixed against its major counterparts in directionless trade on Thursday, as the euro stayed locked in a tight range and the yen remained broadly weaker.

During European afternoon trade, the greenback was fractionally lower against the euro, with EUR/USD inching up 0.02% to hit 1.4250.

Earlier Thursday, European Central Bank President Jean-Claude Trichet warned that the bank would be unable to accept Greece's government bonds as collateral in the event of a restructuring of its debt.

But the greenback slipped against the pound, with GBP/USD easing up 0.09% to hit 1.6182 after official data showed that U.K. retail sales rose more-than-expected in April.

Meanwhile, the greenback was up against the yen and the Swiss franc with USD/JPY rising 0.26% to hit 81.88 and USD/CHF climbing 0.28% to hit 0.8834.

Official data showed earlier that Japan's economy contracted by an annualized 3.7% in the first quarter, due to the effects of the March 11 earthquake and tsunami, more than the annualized 2.0% drop expected.

A separate report showed that Swiss investor confidence dropped for the first time in three months in May, as the ongoing euro zone debt crisis and the stronger franc weighed.

Elsewhere, the greenback was lower against its Canadian, Australian and New Zealand counterparts, with USD/CAD shedding 0.21% to hit 0.9678, AUD/USD rising 0.16% to hit 1.0648 and NZD/USD easing up 0.08% to hit 0.7895.

Earlier Thursday, announcing its annual budget, New Zealand's government said it would return its budget to surplus in four years by cutting public spending.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, dipped 0.07%.

Later in the day, the U.S. was to publish its weekly report on initial jobless claims as well as industry data on existing home sales and official data on manufacturing activity in Philadelphia.

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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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