IV:Dollar broadly higher vs. rivals as E.Z. concerns weigh
Investing.com - The U.S. dollar was broadly higher against the other major currencies on Thursday, as a string of globally negative data from the euro zone weighed on demand for riskier assets.
During European morning trade, the dollar was higher against the euro, with EUR/USD retreating 0.84% to 1.3172.
The euro came under broad selling pressure after data showed that the services purchasing managers’ index for the euro zone dropped from 48.6 to 47.3 in February, missing expectations for an increase to 49.2.
The euro zone manufacturing PMI fell to a seasonally adjusted 47.8 from a final reading of 47.9 in January. Analysts had expected the index to improve to 48.4.
Separately, Germany’s manufacturing PMI rose to 50.1 from a final reading of 49.8 in January, moving into expansion territory for the first time in 12 months, but below expectations for a tick up to 50.5.
The greenback was also lower against the pound, with GBP/USD slipping 0.11% to 1.5215.
The pound remained close to two-and-a-half year lows against the greenback amid concerns over the faltering U.K. economy, which contracted by 0.3% in the three months to December, while the Bank of England warned last week that inflation would remain above target until 2016.
Elsewhere, the greenback was lower against the yen, with USD/JPY dropping 0.47% to trade at 93.13, but higher against the Swiss franc, with USD/CHF climbing 0.59% to 0.9322.
In Switzerland, official data earlier showed that the trade surplus rose to CHF2.126 billion in January from a surplus of CHF0.904 billion the previous month.
Analysts had expected the trade surplus to advance to CHF1.735 billion.
The greenback was higher against its Canadian, Australian and New Zealand counterparts, with USD/CAD rising 0.34% to 1.0199, AUD/USD edging down 0.19% to 1.0238 and NZD/USD falling 0.20% to 0.8341.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.49% to 81.56.
Markets were also jittery after the minutes of the Federal Reserve's January meeting showed that policymakers discussed the slowing or stopping of bond purchases even before the job market improves, amid concerns that the policy could cause instability in financial markets.
Later in the day, the U.S. was to release official data on consumer price inflation as well as the weekly government report on initial jobless claims. The U.S. was also to publish industry data on existing home sales and a report on manufacturing activity in Philadelphia.
