Forex - USD/CAD steady, focus on euro zone

Forexpros - The U.S. dollar was steady against its Canadian counterpart on Wednesday, as global growth concerns continued to weigh on market sentiment, while investors eyed fresh developments in the euro zone.

USD/CAD 0.9769 during early U.S. trade, the session low; the pair subsequently consolidated at 0.9782, slipping 0.02%.

The pair was likely to find support at 0.9745, Tuesday's low and resistance at 0.9812, the high of October 5.

Market participants remained cautious amid ongoing uncertainty over Spain’s position on requesting external financial aid and what form a bailout would take.

Earlier in the day, the International Monetary Fund said the crisis in the euro zone remains the greatest threat to the global economy and warned that policymakers need to urgently strengthen fiscal and financial ties within the euro area.

Meanwhile, concerns over whether international creditors will extend loans to Greece continued, as the country struggles to meet deficit reduction targets.

Elsewhere, the loonie was also steady against the euro with EUR/CAD dipping 0.01%, to hit 1.2602.

Also Wednesday, Italy saw yields rise at an auction of short-term government debt, reflecting investor nervousness over the risk of contagion from Spain.

Italy’s Treasury auctioned EUR8 billion of 12-month bonds at an average yield of 1.94% up from 1.69% previously and the highest level since mid-August.

Trade was expected to remain subdued on Wednesday, with no major economic data releases on the calendar

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Dollar steady in subdued trade as investors eye euro zone

Forexpros - The U.S. dollar was steady against the other major currencies on Wednesday, as investors remained on the sidelines while they awaited fresh developments in the euro zone.

During European afternoon trade, the dollar was almost unchanged against the euro, with EUR/USD dipping 0.01% to 1.2884.

Market participants remained cautious amid ongoing uncertainty over Spain’s position on requesting external financial aid and what form a bailout would take.

Earlier in the day, the International Monetary Fund said the crisis in the euro zone remains the greatest threat to the global economy and warned that policymakers need to urgently strengthen fiscal and financial ties within the euro area.

Meanwhile, concerns over whether international creditors will extend loans to Greece continued, as the country struggles to meet deficit reduction targets.

The greenback was steady close to a one-month high against the pound, with GBP/USD inching up 0.03% to 1.6008.

Sentiment on sterling remained fragile after a recent string of soft U.K. economic data undermined hopes for a sustained economic recovery and kept alive speculation over the possibility of another round of easing by the Bank of England.

Elsewhere, the greenback was fractionally higher against the yen, with USD/JPY edging up 0.10% to 78.33, but edged lower against the Swiss franc, with USD/CHF easing down 0.06% to 0.9396.

The greenback was mixed against its Canadian, Australian and New Zealand counterparts, with USD/CAD inching down 0.01% to 0.9781, AUD/USD climbing 0.41% to 1.0247 and NZD/USD edging up 0.04% to 0.8182.

The Australian dollar found support after the country’s treasury auctioned AUD4 billion in government debt earlier in the day.

Separately, a report by Westpac and the Melbourne Institute showed that Australian consumer sentiment improved only modestly in October, despite three interest rate cuts in the past six months by the country’s central bank.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, inched down 0.03% to 80.07.

Trade was expected to remain subdued on Wednesday, with no major economic data releases on the calendar.

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Forex - GBP/USD little changed in quiet trade

Forexpros - The pound was little changed against the U.S. dollar in quiet trade on Wednesday, as investors remained cautious amid ongoing uncertainty over a possible bailout for Spain, while worries over the economic outlook also weighed.

GBP/USD hit 1.6026 during European afternoon trade, the session high; the pair subsequently consolidated at 1.6011, inching up 0.05%.

Cable was likely to find near-term support at 1.5975, the session low and a one-month low and resistance at 1.6045, Tuesday’s high.

Investors remained cautious amid ongoing uncertainty over Spain’s position on requesting external financial aid and what form a bailout would take.

Earlier in the day, the International Monetary Fund said the crisis in the euro zone remains the greatest threat to the global economy and warned that policymakers need to urgently strengthen fiscal and financial ties within the euro area.

The pound remained under pressure after a recent string of soft economic data undermined hopes for a sustained economic recovery and kept alive speculation over the possibility of another round of easing by the Bank of England.

On Tuesday, the IMF said the U.K. economy would contract by 0.4% in 2012, compared to its July forecast for 0.2% growth.

Sterling was almost unchanged against the euro, with EUR/GBP dipping 0.04% to 0.8048.

Trade was expected to remain subdued on Wednesday, with no major economic data releases on the calendar.

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Forex - EUR/USD off session low; remains vulnerable

Forexpros - The euro pulled away from the session low against the U.S. dollar on Wednesday, but the single currency remained vulnerable amid ongoing uncertainty over prospects for a Spanish bailout, while worries over the global economic outlook also weighed.

EUR/USD pulled back from 1.2836, the pair’s lowest since October 1, to hit 1.2891 during European afternoon trade, inching up 0.04%.

The pair was likely to find near-term support at 1.2802, the low of October 1 and resistance at 1.2990, Tuesday’s high.

The euro remained under pressure amid ongoing uncertainty over Spain’s position on requesting external financial aid and what form a bailout would take.

Earlier in the day, the International Monetary Fund said the crisis in the euro zone remains the greatest threat to the global economy and warned that policymakers need to urgently strengthen fiscal and financial ties within the euro area.

Elsewhere, Italy saw yields rise at an auction of short-term government debt, reflecting investor nervousness over the risk of contagion from Spain.

Italy’s Treasury auctioned EUR8 billion of 12-month bonds at an average yield of 1.94% up from 1.69% previously and the highest level since mid-August.

Meanwhile, concerns over whether international creditors will extend loans to Greece continued, as the country struggles to meet deficit reduction targets.

The euro was fractionally lower against the pound, with EUR/GBP dipping 0.04% to 0.8048, but edged higher against the yen, with EUR/JPY easing up 0.16% to 100.98.

Also Wednesday, bilateral talks between Spanish Prime Minister Mariano Rajoy and French President Francois Hollande were continuing in Paris

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Forex - USD/CHF off session high in quiet trade

Forexpros - The U.S. dollar came off the session high against the Swiss franc in quiet trade on Wednesday, but losses were limited as ongoing concerns over the outlook for global growth and uncertainty over a possible bailout for Spain supported safe haven demand.

USD/CHF pulled back from 0.9431, the session high, to hit 0.9390 during European afternoon trade, slipping 0.13%.

The pair was likely to find support at 0.9321, Tuesday’s low and resistance at 0.9431, the session high and a seven-day high.

Demand for the dollar remained supported amid ongoing uncertainty over Spain’s position on requesting external financial aid and what form a bailout would take.

Earlier in the day, the International Monetary Fund said the crisis in the euro zone remains the greatest threat to the global economy and warned that policymakers need to urgently strengthen fiscal and financial ties within the euro area.

Elsewhere, Italy saw yields rise at an auction of short-term government debt, reflecting investor nervousness over the risk of contagion from Spain.

Italy’s Treasury auctioned EUR8 billion of 12-month bonds at an average yield of 1.94% up from 1.69% previously and the highest level since mid-August.

Meanwhile, concerns over whether international creditors will extend loans to Greece continued, as the country struggles to meet deficit reduction targets.

The Swissie was fractionally higher against the euro, with EUR/CHF dipping 0.05% to 1.2109.

Also Wednesday, Swiss National Bank Chairman Thomas Jordan said the 1.20 per euro exchange rate floor the central bank imposed in September 2011 continued to be the correct policy for the foreseeable future

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Dollar rangebound as Spain uncertainty, growth worries weigh

Forexpros - The U.S. dollar was trading in a tight range against the other major currencies on Wednesday, as persistent concerns over the outlook for global growth and uncertainty over a possible Spanish bailout weighed on market sentiment.

During European morning trade, the dollar was higher against the euro, with EUR/USD slipping 0.19% to 1.2860.

The euro remained under pressure amid ongoing uncertainty over Spain’s position on requesting external financial aid and what form a bailout would take.

Earlier in the day, the International Monetary Fund said the crisis in the euro zone remains the greatest threat to the global economy and warned that policymakers need to urgently strengthen fiscal and financial ties within the euro area.

Elsewhere, Italy saw yields rise at an auction of short-term government debt, with the yield on 12-month bills climbing to 1.94% from 1.69% previously, the highest level since mid-August.

The greenback was steady close to a one-month high against the pound, with GBP/USD dipping 0.03% to 1.5997.

Sentiment on sterling remained fragile after a recent string of soft U.K. economic data undermined hopes for a sustained economic recovery and kept alive speculation over the possibility of another round of easing by the Bank of England.

Elsewhere, the greenback was fractionally higher against the yen and the Swiss franc, with USD/JPY edging up 0.06% to 78.30 and USD/CHF easing up 0.09% to 0.9410.

The greenback was mixed against its Canadian, Australian and New Zealand counterparts, with USD/CAD inching up 0.04% to trade at 0.9786, AUD/USD easing up 0.16% to 1.0221 and NZD/USD dipping 0.09% to 0.8172.

In Australia, a report by Westpac and the Melbourne Institute showed that consumer sentiment improved only modestly in October, despite three interest rate cuts in the past six months by the country’s central bank.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, eased up 0.11% to 80.19.

Later in the day, Spanish Prime Minister Mariano Rajoy was to hold talks with French President Francois Hollande in Paris

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Forex - GBP/USD eases off 1-month low but upside limited

Forexpros - The pound pulled back from a one-month low against the U.S. dollar on Wednesday, but gains looked likely to remain limited amid ongoing concerns over the weak U.K. economy and uncertainty over prospects of a bailout for Spain.

GBP/USD pulled away from 1.5975, the session low and a one-month low, to hit 1.6069 during European morning trade, inching up 0.04%.

Cable was likely to find near-term support at 1.5975, the session low and resistance at 1.6045, Tuesday’s high.

The pound remained under pressure after a recent string of soft economic data undermined hopes for a sustained economic recovery and kept alive speculation over the possibility of another round of easing by the Bank of England.

On Tuesday, the International Monetary Fund said the U.K. economy would contract by 0.4% in 2012, compared to its July forecast for 0.2% growth.

Meanwhile, investors remained cautious amid ongoing uncertainty over Spain’s position on requesting external financial aid and what form a bailout would take.

Sterling was higher against the euro, with EUR/GBP down 0.19% to 0.8036.

Also Wednesday, Italy saw yields rise at an auction of short-term government debt, with the yield on 12-month bills climbing to 1.94% from 1.69% previously, the highest level since mid-August.

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Forex - USD/JPY inches higher, gains limited by growth woes

Forexpros - The U.S. dollar inched higher against the yen on Wednesday, but gains were limited amid growing worries over the global economic outlook and lingering fears over the euro zone’s ongoing debt crisis.

USD/JPY hit 78.35 during European morning trade, the session high; the pair subsequently consolidated at 78.32, adding 0.09%.

The pair was likely to find support at 78.14, Tuesday’s low and resistance at 78.42, Tuesday’s high.

Market sentiment remained under pressure after the International Monetary Fund cut its 2012 global growth forecast to the slowest pace since the 2009 recession on Tuesday, and warned of even weaker expansion unless officials in the U.S. and Europe address threats to their economies.

Investors also remained cautious amid worries over how soon Spain may formally request a bailout and uncertainty over whether international creditors will extend loans to Greece.

The yen came under modest selling pressure after IMF Deputy Managing Director Naoyuki Shinohara said Tuesday the Bank of Japan has room to ease policy further, adding to calls from Japanese politicians for more action by the central bank.

Elsewhere, the yen was higher against the euro, with EUR/JPY down 0.06% to 100.77.

Later in the day, Italy was to auction EUR11 billion of short-term government bonds, while the Federal Reserve was to publish its Beige Book

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Forex - NZD/USD little changed as growth concerns persist

Forexpros - The New Zealand dollar was little changed against its U.S. counterpart on Wednesday, as concerns over the outlook for global economic growth and the handling of he debt crisis in the euro zone continued to dampen investor confidence.

NZD/USD hit 0.81!é during European morning trade, the daily high; the pair subsequently consolidated at 0.8181, edging up 0.02%.

The pair was likely to find support at 0.8112, the low of August 8 and resistance at 0.8223, the high of October 8.

Risk sentiment remained under pressure after the International Monetary Fund cut global economic growth forecasts for 2012 and 2013 on Tuesday, justifying the recent round of central bank stimulus which aimed to support to the world's fragile economies.

Earlier in the day, the IMF said the crisis in the euro zone remains the greatest threat to the global economy and warned that policymakers need to urgently strengthen fiscal and financial ties within the euro area.

Markets were also jittery amid uncertainty over when Spain will request a sovereign bailout and when Greece will agree with its international lenders on terms for the next tranche of funds.

The kiwi was lower against the Australian dollar with AUD/NZD rising 0.31%, to hit 1.2513.

Also Wednesday, the Westpac Banking Corporation said that consumer sentiment in Australia rose 1% in October, after a 1.60% inrease the previous month.

Later in the day, the Federal Reserve was to publish its Beige Book

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Forex - AUD/USD rises after Australian consumer sentiment data

Forexpros - The Australian dollar rose against its U.S. counterpart on Wednesday, after upbeat Australian consumer sentiment data, although global growth concerns continued to weigh on market sentiment.

AUD/USD hit 1.0237 during European morning trade, the daily high; the pair subsequently consolidated at 1.0239, rising 0.32%.

The pair was likely to find support at 1.0150, the low of October 8 and resistance at 1.0300, the high of September 2.

In a report, the Westpac Banking Corporation said that consumer sentiment in Australia rose 1% in October, after a 1.60% inrease the previous month.

Meanwhile, sentiment remained under pressure after the International Monetary Fund cut global economic growth forecasts for 2012 and 2013 on Tuesday, justifying the recent round of central bank stimulus which aimed to support to the world's fragile economies.

Earlier in the day, the IMF said the crisis in the euro zone remains the greatest threat to the global economy and warned that policymakers need to urgently strengthen fiscal and financial ties within the euro area.

Markets were also jittery amid uncertainty over when Spain will request a sovereign bailout and when Greece will agree with its international lenders on terms for the next tranche of funds.

Elsewhere, the Aussie was higher against the euro with EUR/AUD shedding 0.43%, to hit 1.2572.

Later in the day, the Federal Reserve was to publish its Beige Book.

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Forex - EUR/USD slips lower as Spain uncertainty continues

Forexpros - The euro slipped lower against the U.S. dollar on Wednesday, as uncertainty over whether Spain will request a bailout dampened investor demand for the single currency.

EUR/USD hit 1.2836 during early European trade, the pair’s lowest since October 1; the pair subsequently consolidated at 1.2873, sliding 0.09%.

The pair was likely to find near-term support at 1.2802, the low of October 1 and resistance at 1.2990, Tuesday’s high.

The euro remained under pressure amid ongoing uncertainty over Spain’s position on requesting external financial aid and what form a bailout would take.

Earlier in the day, the International Monetary Fund said the crisis in the euro zone remains the greatest threat to the global economy and warned that policymakers need to urgently strengthen fiscal and financial ties within the euro area.

The single currency was lower against the pound and the yen, with EUR/GBP inching down 0.14% to 0.8040 and EUR/JPY dipping 0.04% to 100.78.

Later in the day, Italy was to auction EUR11 billion of short-term government bonds. The country was also to publish official data on industrial production. In addition, Spanish Prime Minister Mariano Rajoy was to hold talks with French President Francois Hollande in Paris

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Forex - Dollar gains on mounting global growth concerns

Forexpros - The dollar rose against most major currencies on Wednesday as fears grew the global economy continues to cool after the International Monetary Fund trimmed growth forecasts for the world economy.

In Asian trading on Wednesday, EUR/USD was down 0.11% at 1.2872.

The International Monetary Fund reported earlier that the global economy will expand 3.3% this year and 3.6% in 2013.

Both forecasts represent downward revisions from July's calls for 3.5% growth this year and 3.9% in 2013.

The downward revisions sparked demand for the safe-haven dollar amid a global risk-off trading session.

The euro and other higher-yielding currencies fell after investors sold and jumped to the sidelines ahead of the release of French and Italian industrial production data.

Uncertainty elsewhere in Europe also kept investors in the safety of the greenback.

Protestors clashed with police in Athens to mark German Chancellor Angela Merkel's visit to Greece, as the German leader urged Greeks to stick with austerity measures, adding the country will be better off in the long run.

Uncertainty over whether Spain will seek a bailout made the liquid dollar an attractive safe haven even more.

The dollar also saw gains against the euro and elsewhere as investors sold stocks and braced for U.S. third-quarter earnings, which hit the wire beginning this week.

The greenback, meanwhile, was up against the pound, with GBP/USD trading down 0.03% at 1.5998.

The dollar was flat against the yen, with USD/JPY trading unchanged at 78.25 and up against the Swiss franc, with USD/CHF trading up 0.09% at 0.9411.

The dollar was largely up against its cousins in Canada, Australia and New Zealand, with USD/CAD trading up 0.09% at 0.9792, AUD/USD unchanged at 1.0207 and NZD/USD trading down 0.29% at 0.8156.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.08% at 80.16.

In the U.S. later Wednesday, the Federal Reserve is to publish its Beige Book, which outlines current economic conditions

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Forex - EUR/JPY drops on IMF forecast cuts, braces for output data

Forexpros - The euro dipped against the yen on Wednesday after the International Monetary Fund announced a decision to cut its 2012 and 2013 global growth forecasts, which sparked demand for safe-haven currencies.

The single currency traded lower also as investors braced for Italian and French industrial production data.

In Asian trading on Wednesday, EUR/JPY hit 100.73, down 0.11%, up from a low of 100.54 and off a high of 100.79.

The pair sought to test support at 100.49, Tuesday's low, and resistance at 101.84, Tuesday's high.

The International Monetary Fund said that the global economy will expand 3.3% this year and 3.6% in 2013.

Both forecasts represent downward revisions from July's calls for 3.5% growth this year and 3.9% in 2013.

The downward revisions sparked demand for the safe-haven dollar and yen, which sent the euro falling.

The euro also fell as investors jumped to the sidelines ahead of the release of French and Italian industrial production data.

Uncertainty elsewhere also kept investors in the safety of the yen.

Protestors clashed with police in Athens to mark German Chancellor Angela Merkel's visit to Greece, as the German leader urged Greeks to stick with austerity measures, adding the country will be better off in the long run.

Uncertainty over whether Spain will seek a bailout kept the euro down as well.

The euro, meanwhile, was down against the pound and down against the Canadian dollar, with EUR/GBP trading down 0.09%  at 0.8044 and EUR/CAD trading down 0.08% at 1.2597.

In the U.S. on Wednesday, the Federal Reserve is to publish its Beige Book, which outlines current economic conditions

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U.S. dollar remains steady to lower on euro zone anticipation

Forexpros - The U.S. dollar was steady against its rivals Wednesday, as investors remained on the sidelines while they awaited fresh developments in the euro zone.

During European afternoon trade, the dollar was slightly lower against the euro, with  EUR/USD gaining 0.05% to 1.2892.

Market participants remained cautious amid ongoing uncertainty over Spain’s position on requesting external financial aid and what form a bailout would take.

Earlier in the day, the International Monetary Fund said the crisis in the euro zone remains the greatest threat to the global economy and warned that policymakers need to urgently strengthen fiscal and financial ties within the euro area.

Meanwhile, concerns over whether international creditors will extend loans to Greece continued, as the country struggles to meet deficit reduction targets.

The greenback was steady close to a one-month high against the pound, with GBP/USD inching up 0.03% to 1.6008.

Sentiment on sterling remained fragile after a recent string of soft U.K. economic data undermined hopes for a sustained economic recovery and kept alive speculation over the possibility of another round of easing by the Bank of England.

Elsewhere, the greenback was fractionally higher against the yen, with USD/JPY edging up 0.10% to 78.33, but edged lower against the Swiss franc, with  USD/CHF easing down 0.06% to 0.9396.

The greenback was mixed against its Canadian, Australian and New Zealand counterparts, with  USD/CAD inching down 0.01% to 0.9781,  AUD/USDclimbing 0.41% to 1.0247 and  NZD/USD edging up 0.04% to 0.8182.

The Australian dollar found support after the country’s treasury auctioned AUD4 billion in government debt earlier in the day.

Separately, a report by Westpac and the Melbourne Institute showed that Australian consumer sentiment improved only modestly in October, despite three interest rate cuts in the past six months by the country’s central bank.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, gave back 0.06% to 80.05.

Trade was expected to remain subdued on Wednesday, with no major economic data releases on the calendar

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Forex - EUR/USD drops as S&P cuts Spain's ratings anew

Forexpros - The euro traded lower against the dollar on Thursday after Standard & Poor's downgraded Spain for the third time this year and slapped a negative outlook on the country.

In Asian trading on Thursday, EUR/USD was trading down 0.14% at 1.2857, up from a session low of 1.2856, and off from a high of 1.2860.

The pair was likely to find near-term support at 1.2802, the low of October 1 and resistance at 1.2990, Tuesday’s high.

Standard & Poor's said it lowered Spain's long-term credit rating to 'BBB-' from 'BBB+' and cut its short-term credit rating to 'A-3' from 'A-2'.

The ratings agency said Spain's deepening economic recession is limiting the Spanish government's policy options and added that rising unemployment and spending constraints are likely to fuel social discontent and contribute to friction between Spain's central and regional governments.

"In our view, the capacity of Spain's political institutions (both domestic and multilateral) to deal with the severe challenges posed by the current economic and financial crisis is declining," Standard & Poor's said in a statement.

Elsewhere, uncertainty as to whether Spain will request a bailout kept the euro lower as well, all helping to offset French and Italian industrial production figures, which beat expectations.

Italian industrial production rose unexpectedly in August.

In a report, Istat said that Italian industrial production rose to 1.7% in August from -0.1% in July, whose figure was revised up from -0.2%.

Analysts had expected Italian industrial production to fall -0.4% last month.

French industrial output rose unexpectedly in August as well.

In a report, INSEE said that French industrial production rose to 1.5% in August from 0.6% in July, whose figure was revised up from 0.2%.

Analysts had expected French industrial production to fall -0.2% last month.

Meanwhile, IMF statements pointing to the European debt crisis as the global economy's strongest headwind fueled the euro sell-off early in Asian trading as well.

The euro, meanwhile, was down against the pound and down against the yen, with EUR/GBP trading down 0.14% at 0.8033, and EUR/JPY trading down 0.30% at 100.37.

Later Thursday, the ECB is to publish its monthly bulletin, with analyzes current and future economic conditions from the bank’s perspective.

The U.S. will release government data on the trade balance, initial jobless claims, import prices and crude oil stockpiles.

Also Thursday, finance ministers and central bankers from the G7 group of industrialized nations are due to hold talks in Tokyo

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Forex - AUD/USD gains on solid Australian jobs data

Forexpros - The Australian dollar rose against the greenback on Thursday after the government revealed the country added more jobs than expected in September.

In Asian trading on Thursday, AUD/USD hit 1.0252, up 0.17%, up from a session low of 1.0219 and off from a high of 1.0266.

The pair was likely to test support at 1.0185, Wednesday's low, and resistance at 1.0275, Friday's  high.

The number of employed people in the country rose by 14,500 last month, the most since May, the Australian Bureau of Statistics reported.

Australia’s unemployment rate rose a little more than expected last month, mainly because more jobless workers began searching for employment, thus jumping back into the labor market.

Only unemployed workers who are actively seeking work can be considered part of the labor market, and when more resume job searches, the participation rate rises and with it, so does the percentage of unemployed workers.

The statistics bureau reported that Australia's unemployment rate rose to a seasonally adjusted 5.4%, from 5.1% in August.

Analysts had expected Australian unemployment rate to rise to 5.3% last month.

The Australian dollar, meanwhile was up against the euro and up against the yen, with EUR/AUD down 0.48% at 1.2522 and AUD/JPY up 0.03% at 80.04.

Later Thursday, the U.S. will release government data on the trade balance, initial jobless claims, import prices and crude oil stockpiles.

Also Thursday, finance ministers and central bankers from the G7 group of industrialized nations are due to hold talks in Tokyo

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Forex - Dollar gains on Standard & Poor\'s Spanish downgrade, Japan data

Forexpros - The dollar rose against most major currencies on Thursday after the Standard & Poor's ratings agency downgraded Spain, sending investors seeking safety in the dollar.

In Asian trading on Thursday, EUR/USD was down 0.33% at 1.2833.

Standard & Poor's said it lowered Spain's long-term credit rating to 'BBB-' from 'BBB+' and cut its short-term credit rating to 'A-3' from 'A-2'.

The ratings agency said Spain's deepening economic recession is limiting the Spanish government's policy options and added that rising unemployment and spending constraints are likely to fuel social discontent and contribute to friction between Spain's central and regional governments.

"In our view, the capacity of Spain's political institutions (both domestic and multilateral) to deal with the severe challenges posed by the current economic and financial crisis is declining," Standard & Poor's said in a statement.

The news sparked demand for the dollar, which sent higher-yielding currencies dipping in the Asian session.

Meanwhile, IMF statements pointing to the European debt crisis as the global economy's strongest headwind fueled a risk-off trading session that sent the dollar up.

Monetary stimulus programs underway at the Federal Reserve have already been priced in and are no longer weakening the dollar as much as in previous sessions.

The U.S. Federal Reserve is currently running a third round of quantitative easing, a monetary stimulus tool that sees the U.S. central bank buy USD40 billion in mortgage-backed securities a month on an open-ended basis to spur recovery.

Such policy tools weaken the greenback.

Japanese data pushed the greenback up as well.

Japan's Economic and Social Research Institute reported earlier that Japan’s core machinery orders fell 3.3% in August after rising 4.6% in July.

Analysts had expected the country's core machinery orders to fall 2.5% in August.

The dollar dipped against its Australian counterpart.

The number of employed people in Australia rose by 14,500 last month, the most since May, the Australian Bureau of Statistics reported, well above analysts' forecasts for 3,800 new jobs.

The greenback, meanwhile, was up against the pound, with GBP/USD trading down 0.06% at 1.5996.

The dollar was down against the yen, with USD/JPY trading down 0.14% at 78.08 and up against the Swiss franc, with USD/CHF trading up 0.22% at 0.9410.

The dollar was mixed against its cousins in Canada, Australia and New Zealand, with USD/CAD trading up 0.11% at 0.9829, AUD/USD up 0.17% at 1.0252 and NZD/USD trading down 0.02% at 0.8162.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.32% at 80.25.

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Forex - EUR/USD lower after Spain ratings downgrade

Forexpros - The euro fell to an eight-day low against the U.S. dollar on Thursday, after ratings agency Standard & Poor’s downgraded Spain’s credit rating to one notch above junk status amid ongoing uncertainty over a full-scale bailout for Spain.

EUR/USD hit 1.2826 during early European trade, the pair’s lowest since October 1; the pair subsequently consolidated at 1.2862, slipping 0.09%.

The pair was likely to find support at 1.2802, the low of October 1 and resistance at 1.2912, Wednesday’s high.

S&P cut its rating on Spain to BBB-minus from BBB-plus with a negative outlook late Wednesday, citing “mounting risks to Spain’s public finances.”

The ratings agency also warned that the capacity of Spanish political institutions to deal with the challenges presented by the current fiscal and economic crisis is declining.

The move brought S&P into line with Moody’s, which downgraded Spain in June.

Sentiment on the euro has been hit by ongoing uncertainty over Spain’s position on requesting external financial aid and what form a bailout would take.

Elsewhere, International Monetary Fund head Christine Lagarde urged governments to work together to repair the faltering global economy or risk a further slowdown in global growth.

The euro was weaker against the pound and the yen, with EUR/GBP down 0.14% to 0.8032 and EUR/JPY falling 0.28% to 100.37.

Later in the day, the European Central Bank was to publish its monthly bulletin. The U.S. was to publish government data on the trade balance, in addition to official data on initial jobless claims and crude oil stockpiles.

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Forex - AUD/USD rises to 7-day high on Australian jobs data

Forexpros - The Australian dollar rose to a seven-day high against its U.S. counterpart on Thursday, after the release of positive Australian employment data, while concerns over the handling of the euro zone's debt crisis remained.

AUD/USD hit 1.0287 during Europeam morning trade, the pair's highest since October 2; the pair subsequently consolidated at 1.0281, climbing 0.43%.

The pair was likely to find support at 1.0185, Wednesday's low and resistance at 1.0354, the high of August 31.

Official data showed that Australia's economy added 14,500 jobs in September, far more than the expected 3,800 increase, following a 9,100 decline in jobs the previous month.

Australia's unemployment rate rose more-than-expected in September however, ticking up to 5.4% from 5.1%. Analysts had expected the unemployment rate to rise to 5.3% last month.

Meanwhile, euro zone debt concerns persisted after ratings agency Standard & Poor's cut its rating on Spain to BBB-minus from BBB-plus with a negative outlook late Wednesday, citing "mounting risks to Spain’s public finances."

The ratings agency also warned that the capacity of Spanish political institutions to deal with the challenges presented by the current fiscal and economic crisis is declining.

The move brought S&P into line with Moody's, which downgraded Spain in June.

Markets were also jittery amid ongoing uncertainty over Spain’s position on requesting external financial aid and what form a bailout would take.

Elsewhere, the Aussie was higher against the euro with EUR/AUD shedding 0.47%, to hit 1.2522.

Later in the day, the U.S. was to publish government data on the trade balance, in addition to official data on initial jobless claims, import prices and crude oil stockpiles

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Forex - NZD/USD higher, gains limited by E.Z. concerns

Forexpros - The New Zealand dollar was higher against its U.S. counterpart on Thursday, but gains were limited as sustained global growth concerns and fears over the handling of the euro zone's financial crisis continued to dominate market sentiment.

NZD/USD hit 0.8182 during European morning trade, the daily high; the pair subsequently consolidated at 0.8180, adding 0.20%.

The pair was likely to find support at 0.8147, the low of August 7 and resistance at 0.8238, the high of October 9.

Euro zone debt concerns persisted after ratings agency Standard & Poor's cut its rating on Spain to BBB-minus from BBB-plus with a negative outlook late Wednesday, citing "mounting risks to Spain’s public finances."

The ratings agency also warned that the capacity of Spanish political institutions to deal with the challenges presented by the current fiscal and economic crisis is declining.

The move brought S&P into line with Moody's, which downgraded Spain in June.

Markets were also jittery amid ongoing uncertainty over Spain’s position on requesting external financial aid and what form a bailout would take.

The kiwi was lower against the Australian dollar with AUD/NZD rising 0.22%, to hit 1.2562.

Also Thursday, official data showed that Australia's economy added 14,500 jobs in September, far more than the expected 3,800 increase, following a 9,100 decline in jobs the previous month.

Australia's unemployment rate rose more-than-expected in September however, ticking up to 5.4% from 5.1%. Analysts had expected the unemployment rate to rise to 5.3% last month.

Later in the day, the U.S. was to publish government data on the trade balance, in addition to official data on initial jobless claims, import prices and crude oil stockpiles.

Read more »