0
 

Dollar gains ground vs. euro after ECB’s Draghi

By Investing.com  |  Forex News  |  Dec 06, 2012 04:17PM GMT  |   1 Comment
 
AA
+
-
Investing.com - The U.S. dollar hit session highs against the broadly weaker euro on Thursday, after the European Central Bank cut its outlook for growth next year, boosting prospects for an interest rate cut in the euro zone.

Dollar gains ground vs. euro after ECB’s Draghi
During U.S. morning trade, the dollar gained ground against the euro, with EUR/USD dropping 0.74% to 1.2967.

The euro weakened broadly after ECB President Mario Draghi cut forecasts for economic growth and inflation in the euro zone at the central bank’s post-policy meeting press conference.

Draghi said the bank expects the euro zone economy to contract by between 0.4% and 0.6% this year and to shrink by between 0.3% and 0.9% in 2013, before returning to growth in 2014.

The central bank also cut the inflation outlook to 2.5% in 2012 and to between 1.1% and 2.1% in 2013.

The ECB left rates unchanged at 0.75% earlier, in a widely expected decision.

Final data on Thursday showed that the bloc’s economy contracted by 0.1% in the third quarter, unchanged from the preliminary estimate and confirming a recession after a 0.2% contraction in the previous quarter.

The greenback pushed higher against the pound, with GBP/USD slipping 0.20% to 1.6063.

The Bank of England kept interest rates on hold at 0.5% and left the size of its asset purchase program unchanged at GBP375 billion earlier , in a widely anticipated decision.

Meanwhile, official data showed that the U.K. trade deficit widened to GBP9.5 billion in October from GBP8.4 billion the previous month as export demand fell.

The greenback was lower against the yen, with USD/JPY down 0.22% to 82.28, but strengthened against the Swiss franc, with USD/CHF up 0.69% to 0.9328.

The greenback was weaker against its Canadian, Australian and New Zealand counterparts, with USD/CAD down 0.17% to 0.9899, AUD/USD rising 0.44% to 1.0500 and NZD/USD climbing 0.51% to 0.8330.

The Canadian dollar remained supported by expectations for a rate hike by the Bank of Canada in the coming months; while Thursday’s stronger-than-forecast Australian employment data underpinned demand for the Aussie.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, climbed 0.47% to 80.19.

In the U.S., the Department of Labor said the number of people who filed for unemployment assistance last week fell to 370,000 from 395,000 in the previous week, better than analysts’ forecasts for a decline to 380,000.

Jobless claims for the preceding week were revised up to 395,000 from a previously reported 393,000.




Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data .

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Related Articles

Forex - EUR/USD down at the end of U.S. session
By 
Investing.com
 - Apr 18, 2014
Forex - USD/JPY up at the end of U.S. session
By 
Investing.com
 - Apr 18, 2014
Forex - GBP/USD down toward the end of U.S. session
By 
Investing.com
 - Apr 18, 2014

Add a Comment

 

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

NZD/USD
 
 
 
Are you sure you want to delete this chart?
 
Comments
Robert Mogensen
Robert Mogensen Dec 06, 2012 05:52PM GMT
I have been trading forex for about 4 years and it had been better times to trade currency. fabturbo.com is a resource that I user for signals and strategies. I have two main brokers been the preferred one OANDA. They have an excellent reputation and customer service. I dont know where this industry could go as ever more trading have become a sort of more robots made rather than human.
 
 
Are you sure you want to delete this chart?
 
 
 

Successfully Reported

Thank you. This comment has been flagged for a moderator.
_touchLoadingMsg