The U.S. dollar was broadly lower against its major counterparts on
Thursday, as investors eyed an Italian government debt auction later in
the day, while uncertainty over the outcome of Sunday’s Greek elections
continued to weigh.
During European morning trade, the dollar was lower against the euro, with EUR/USD adding 0.12% to hit 1.2573.
Sentiment on the euro remained fragile as Italy was preparing to sell up to EUR4.5 billion in long term bonds later in the day, amid growing fears the country will be the next euro zone member to require a bailout. Rome saw borrowing costs surge to the highest level since December at an auction of 12-month government bonds on Wednesday.
Markets were also jittery ahead of highly anticipated Greek elections on Sunday, which could determine the country’s future in the euro zone.
Market sentiment had weakened on Wednesday after Moody’s rating agency downgraded Spain’s credit rating by three notches, from A3 to Baa3, citing the nation’s increased debt burden, weakening economy and limited access to capital markets.
The greenback was higher against the pound, with GBP/USD edging down 0.08% to hit 1.5493.
Elsewhere, the greenback was lower against the yen and the Swiss franc, with USD/JPY declining 0.14% to hit 79.37 and USD/CHF falling 0.13% to hit 0.9551.
The Swiss National Bank held its benchmark interest rate at 0.0%, in a widely anticipated decision and reiterated that it was prepared to buy foreign currency in unlimited quantities in order to enforce the 1.20 minimum exchange rate imposed on the euro in September.
In addition, the greenback was lower against its Canadian, Australian and New Zealand counterparts, with USD/CAD shedding 0.16% to hit 1.0284, AUD/USD easing up 0.05% to hit 0.9938 and NZD/USD climbing 0.52% to hit 0.7763.
Earlier in the day, the Reserve Bank of New Zealand maintained its benchmark interest rate at 2.50%, citing a deteriorating global economic outlook. The central bank also pushed back its forecast for when future rate hikes would start.
In Australia, a report by the Melbourne Institute showed that inflation expectations rose 2.3% in May, following a 3.1% rise the previous month.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.01%, to trade at 82.59.
Later in the day, the U.S. was to produce official data on consumer price inflation, in addition to a government report on initial unemployment claims.
Asad Khan
Financial Analyst (CFB)
050-8774861
asad@cfb.ae
During European morning trade, the dollar was lower against the euro, with EUR/USD adding 0.12% to hit 1.2573.
Sentiment on the euro remained fragile as Italy was preparing to sell up to EUR4.5 billion in long term bonds later in the day, amid growing fears the country will be the next euro zone member to require a bailout. Rome saw borrowing costs surge to the highest level since December at an auction of 12-month government bonds on Wednesday.
Markets were also jittery ahead of highly anticipated Greek elections on Sunday, which could determine the country’s future in the euro zone.
Market sentiment had weakened on Wednesday after Moody’s rating agency downgraded Spain’s credit rating by three notches, from A3 to Baa3, citing the nation’s increased debt burden, weakening economy and limited access to capital markets.
The greenback was higher against the pound, with GBP/USD edging down 0.08% to hit 1.5493.
Elsewhere, the greenback was lower against the yen and the Swiss franc, with USD/JPY declining 0.14% to hit 79.37 and USD/CHF falling 0.13% to hit 0.9551.
The Swiss National Bank held its benchmark interest rate at 0.0%, in a widely anticipated decision and reiterated that it was prepared to buy foreign currency in unlimited quantities in order to enforce the 1.20 minimum exchange rate imposed on the euro in September.
In addition, the greenback was lower against its Canadian, Australian and New Zealand counterparts, with USD/CAD shedding 0.16% to hit 1.0284, AUD/USD easing up 0.05% to hit 0.9938 and NZD/USD climbing 0.52% to hit 0.7763.
Earlier in the day, the Reserve Bank of New Zealand maintained its benchmark interest rate at 2.50%, citing a deteriorating global economic outlook. The central bank also pushed back its forecast for when future rate hikes would start.
In Australia, a report by the Melbourne Institute showed that inflation expectations rose 2.3% in May, following a 3.1% rise the previous month.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.01%, to trade at 82.59.
Later in the day, the U.S. was to produce official data on consumer price inflation, in addition to a government report on initial unemployment claims.
Asad Khan
Financial Analyst (CFB)
050-8774861
asad@cfb.ae
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