Forexpros - The dollar traded sideways against the world's major global currencies on Wednesday, caught in a tug-of-war between one group of investors buying the greenback to flee U.S. fiscal uncertainty and another selling on hopes of an abating European debt crisis. In Asian trading on Wednesday, EUR/USD was up 0.09% at 1.3106. Greece earlier launched a EUR10 billion buyback of government debt maturing between 2023 and 2042, a requirement for Athens to tap bailout packages totaling EUR44 billion. Eurozone officials expressed confidence the country's debt repurchase program will be successful, which supported the single currency against safe-haven currencies such as the dollar. However, growing unease in the U.S. over fiscal murkiness sent some investors chasing the dollar, a popular safe-haven asset class to ride out uncertainty. Congressional Republicans and the Democratically controlled White House earlier continued to dig in their heels over tax and spending issues. Both sides of the U.S. political aisle must agree on a fiscal framework for next year, or a series of tax cuts will expire at the same time automatic cuts to government spending kick in, a combination known as a fiscal cliff that could tip the country into recession next year if left unresolved by U.S. policymakers. Taxes serve as a hurdle, with the White House insisting tax rates must rise for wealthy Americans, a measure opposed by Republicans who favor extending tax breaks for everyone but cutting deductions to free up revenue. President Barack Obama earlier insisted there would be no deal unless Republicans agree to hike tax rates on top U.S. earners Uncertainty over concerns that both political parties may be unable to strike a deal or will kick the can down the road by punting on deadlines continued to fuel uncertainty and chase investors towards the safety of the dollar. Opposing trading strategies sent the greenback jumping in and out of positive territory on Wednesday. The greenback, meanwhile, was down against the pound, with GBP/USD trading up 0.02% at 1.6105. The dollar was up against the yen, with USD/JPY trading up 0.33% at 82.18 and up against the Swiss franc, with USD/CHF trading up 0.02% at 0.9268. The dollar was down against its cousins in Canada, Australia and New Zealand, with USD/CAD trading down 0.06% at 0.9921, AUD/USD up 0.03% at 1.0475 and NZD/USD trading up 0.15% at 0.8250. The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.01% at 79.67. On Wednesday, the U.S. is to release a report on ADP nonfarm payrolls, as well as official data on factory orders and crude oil stockpiles. In addition, the ISM is to produce a report on service sector activity.

Source