FX:Dollar broadly higher vs. rivals after weak data
Forexpros - The U.S. dollar was higher against all almost all of its major counterparts on Thursday, after a raft of weak euro zone and U.K. data hit investor appetite for riskier assets, while weak data out of China weighed on growth linked currencies.
During European morning trade, the dollar was lower against the euro, with EUR/USD shedding 0.46% to hit 1.3155.
The euro weakened broadly after preliminary data showed that manufacturing activity in the euro zone slumped unexpectedly in March, remaining in contraction territory for the eighth consecutive month, sparking concerns that the region’s economy is sliding back into a recession.
Service sector activity in the euro zone declined to the lowest level in four months in March.
The greenback was also higher against the pound, with GBP/USD dropping 0.46% to hit 1.5798.
In the U.K., official data showed that retail sales fell by a seasonally adjusted 0.8% last month, disappointing expectations for a 0.5% decline.
The greenback retreated against the broadly stronger yen, with USD/JPY tumbling 0.73% to hit 82.80.
Government data showed earlier that Japan’s trade balance swung into a surplus of JPY32.92 billion in February, confounding expectations for a deficit of JPY120 billion following the downwardly revised deficit of JPY1.47 trillion reported in January.
The dollar was higher against the Swiss franc, with USD/CHF rising 0.47% to hit 0.9163.
Elsewhere, the greenback was higher against its Canadian, Australian and New Zealand cousins, with USD/CAD adding 0.28% to hit 0.9950, AUD/USD falling 0.88% to hit 1.0363 and NZD/USD slumping 0.94% to hit 0.8078.
New Zealand’s gross domestic product rose less-than-expected in the fourth quarter official data showed earlier, rising 0.3% after a 0.7% increase the previous quarter.
Analysts had expected the GDP to rise 0.6% in the fourth quarter.
Sentiment on the growth linked dollars was also hit after a report showed that China’s HSBC manufacturing index contracted for a fifth successive month in March, as new orders fell.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.32% to hit 80.06.
Later in the day, the U.S. was to publish official data on initial jobless claims, while Federal Reserve Chairman Ben Bernanke was to speak.
