FX:Dollar steady after Dutch, Spanish bond auctions
Forexpros - The U.S. dollar was steady against its major counterparts on Tuesday, as concerns over political instability in the euro zone eased following well received auctions of Dutch and Spanish government debt but investors remained wary over the outlook for the region.
During European morning trade, the dollar was slightly lower against the euro, with EUR/USD inching up 0.08% to hit 1.3167.
The euro was little changed against the greenback after the Netherlands successfully auctioned EUR1.99 billion of two and 25-year government bonds.
The results of the auction were closely watched amid fears that the country could lose its triple-A credit rating following the collapse of the government on Monday after talks on the 2013 austerity budget failed.
Meanwhile, Spain auctioned EUR1.93 billion of three and six-month bonds, but short-term borrowing costs were higher after the country’s central bank said Monday that the economy has entered a recession.
The greenback was steady against the pound, with GBP/USD easing up 0.05% to hit 1.6139.
Official data showed that U.K. public sector borrowing rose more-than-expected last month, while the country’s debt-to-GDP ratio rose to a record high 8.3%.
The Office for National Statistics said public borrowing rose to GBP18.17 billion last month, from GBP17.95 billion a year ago, higher than expectations for an increase to GBP14.4 billion.
Elsewhere, the greenback slipped lower against the yen and the Swiss franc, with USD/JPY inching down 0.03% to hit 81.15 and USD/CHF slipping 0.10% to hit 0.9128.
Switzerland's trade surplus narrowed to CHF1.69 billion last month from CHF2.61 billion in February, as imports rebounded from the previous month’s steep drop.
The greenback was mixed against its Canadian, Australian and New Zealand counterparts, with USD/CAD losing 0.10% to hit 0.9904, AUD/USD shedding 0.34% to hit 1.0284 and NZD/USD dipping 0.07% to hit 0.8128.
In Australia, official data showed that consumer prices rose 0.1% in the first quarter, below expectations for a 0.7% rise, fuelling expectations for a rate cut by the Reserve Bank of Australia at next week’s policy meeting.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was lower by 0.08% at 79.41.
Later in the day, the U.S. was to release an industry data on house price inflation, as well a report on consumer confidence and government data on new home sales.
