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Dollar Falls Further Versus Euro, Briefly Below Par Against Loonie

Dollar Falls Further Versus Euro, Briefly Below Par Against Loonie
1/26/2012 7:25 AM ET

The dollar remained under pressure Thursday morning, dropping below par versus its Canadian counterpart after the Federal Reserve extended its timetable for raising interest rates to late-2014

Meanwhile, Britain's Prime Minister David Cameron, in Davos for the World Economic Forum, urged his counterparts in the euro zone to swiftly deal with their sovereign debt crisis.

And reports out of Greece said that officials were back in talks with private creditors, hoping to work out a voluntary restructuring that would allow Greece to avoid a disastrous default.

Ahead of a flurry of economic data from the U.S., the dollar dropped to $1.3155 versus the euro, its lowest since December 21.

A monthly low was also reached versus the sterling, with the buck sliding to $1.5715.

And the dollar was briefly below parity versus Canada's loonie for the first time in months,

Italy raised the maximum amount it targeted at a bond auction on Thursday that witnessed strong demand.

Confidence among German consumers is set to increase in February, supported by rising economic optimism and high income expectations despite growing concerns about a possible recession in euro area in the first quarter of 2012, survey results from market research group GfK revealed Thursday.

The dollar was unable to sustain yesterday's gains versus the yen, dropping back to Y77.60 from above Y78.20.

The Commerce Department is set to release its durable goods orders report for December at 8:30 am ET. Economists expect a 2.2 percent increase in durable goods orders for December following a 3.7 percent increase in November, Excluding transportation, orders may have seen a more modest 0.7 percent increase.

Around the same time, the Labor Department is due to release its customary jobless claims report for the week ended January 21st at 8:30 am ET. Economists expect claims to increase to 370,000 after they declined to 352,000 in the previous week.

The Commerce Department will also release the new home sales report for December at 10 am ET. The consensus estimate calls for new homes sales of 320,000 from a seasonally adjusted annual rate of 315,000 in November.

Additionally, the Conference Board is scheduled to release a report on the U.S. leading index for December at 10 am ET. The consensus estimate calls for a 0.7 percent increase in the leading indicators index for the month.

by RTT Staff Writer

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