Forexpros – The euro was mixed against its major counterparts in choppy trade on Thursday, as investors focused on developments in the euro zone amid growing concerns over the outcome of Greece’s political and financial woes.
During European late morning trade, the euro was steady against the U.S. dollar, with EUR/USD edging up 0.04% to hit 1.2932.
The euro remained under pressure after Alexis Tsipras, the head of Greece’s second-biggest party Syriza, gave up his attempt to form a new government on Wednesday, putting Greek Socialist leader Evangelos Venizelos in a position to make a last-ditch attempt to form a government on Thursday.
Chances of any deal on a coalition government looked slim after two failed attempts, making new elections in three to four weeks the most likely outcome and fueling fears that Greece will not have a government in place in time to secure its next tranche of international aid next month.
Adding to concerns, the European Central Bank cut its 2012 gross domestic product growth outlook to minus 0.2% from minus 0.1%, in its monthly report published earlier, as downside risks remain to the economic outlook.
The single currency rose against the pound but remained within striking distance of a three-and-a-half year low, with EUR/GBP adding 0.17% to hit 0.8029.
Sterling found some support after official data showed that manufacturing production in the U.K. rose more-than-expected in March, adding 0.9% after a 1.1% decline the previous month. Analysts had expected manufacturing production to rise 0.5% in March.
But investors remained cautious ahead of the release of the Bank of England’s rate decision later in the day.
The euro was hovering close to a two-and-a-half month low against the yen, with EUR/JPY easing up 0.04% to hit 103.00, and remained little changed against the Swiss franc EUR/CHF inching 0.02% higher to hit 1.2011.
Elsewhere, the shared currency was mixed against the Canadian, Australian and New Zealand dollars, with EUR/CAD edging up 0.07% to hit 1.2972, EUR/AUD falling 0.34% to hit 1.2822 and EUR/NZD retreating 0.13% to hit 1.6467.
The Australian dollar rallied earlier after official data showed that Australia’s unemployment rate fell unexpectedly to 4.9% from 5.2% in March. Analysts had expected the unemployment rate to rise to 5.3% in April.
Commodity-related currencies remained under pressure however, as data showed earlier that Chinese exports and imports in April were well below analysts’ expectations.
In a report, the Customs General Administration of China said the nation’s trade surplus widened to USD18.42 billion in April from USD5.35 in the previous month.
Later in the day, the U.S. was to release official data on trade balance, followed by government reports on unemployment claims and import prices. Federal Reserve Chairman Ben Bernanke was also due to speak.
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