Forex - Dollar mostly higher as riskier currencies struggle

Shutterstock photo - The U.S. dollar rose against most of the major currencies in Asian trading Tuesday as traders backed away from riskier fare amid concerns about what the next round of U.S. budget negotiations has in store for the financial markets.

In Asian trading Tuesday, EUR/USD fell 0.06% to 1.3109. EUR/USD jumped 0.23% during Monday's U.S. session. The pair was likely to find support at 1.2999, Friday's low, and resistance at 1.3299, Wednesday's high.

Later this week, the European Central Bank is scheduled to hold a policy meeting and with some traders betting on a rate cut, the euro was under some pressure in Tuesday's Asian session.

EUR/USD and other pairs including the common currency should be in focus today as the Eurozone will release official data on unemployment on retail sales, while Germany is to release government data on factory orders.

Speaking of policy meetings, GBP/USD was higher by 0.01% at 1.6120. The Bank of England is scheduled to meet later this week as well.

USD/JPY fell 0.23% to 87.59 as the pair seems to be having issues staying about 87.80 and making its way to 88. Despite slightly weaker oil prices, USD/CAD fell 0.03% to 0.9859.

Meanwhile, USD/CHF fell 0.08% to 0.9207. During Monday's European session, a report by the Swiss National Bank showed that foreign currency reserves declined to CHF427.17 billion in December from CHF427.37 billion the previous month, down for the third successive month.

The SNB's currency reserve holdings are closely watched by investors for indications of how much the bank is spending to defend the 1.20 minimum exchange rate floor against the euro imposed in September 2011.

Elsewhere, NZD/USD fell 0.07% to 0.8364. AUD/USD fell 0.13% to 1.0491 after Australia's trade balance fell more-than-expected last month, according to a report released earlier today. n a report, Australian Bureau of Statistics said that Australia's trade balance fell to a seasonally adjusted -2.64B, from -2.44B in the preceding month whose figure was revised down from -2.09B.

Analysts had expected Australia's trade balance to fall to -2.30B last month. The U.S. Dollar Index fell 0.14% to 80.25. - offers an extensive set of professional tools for the Forex, Commodities, Futures and the Stock Market including real-time data streaming, a comprehensive economic calendar, as well as financial news and technical & fundamental analysis by in-house experts.

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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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