Forexpros – The dollar fell against most major world currencies Thursday after soft U.S. housing data sent investors selling the greenback and opting for the yen as a safe haven amid roiling European uncertainty.
In Asian trading on Thursday, EUR/USD was trading up 0.07% at 1.2375.
In the U.S., soft housing data hit the wire just days before the closely watched Friday jobs report, when May employment figures will be released.
The dollar has strengthened in recent sessions amid an escalating European debt crisis, serving as a safe-haven of choice.
However, the yen took that role on Thursday after the U.S. National Association of Realtors reported that pending home sales dropped 5.5% in April, well beyond expectations for a 0.1% decline.
The U.S. Bureau of Labor Statistics will unveil May jobs figures on Friday, and the housing data sent a few investor selling greenbacks for profits to await the latest unemployment figures out of the U.S.
Meanwhile in Europe, Spain appeared set to recapitalize the Bankia financial institution with EUR19 billion via debt financing, which has currency markets concerned, especially since the regional government of Catalonia has asked Madrid for help refinancing its debts.
Yields in Spanish debt auctions have spiked in recent sessions and remain elevated, while borrowing costs in Italian auctions were up as well.
Meanwhile in Greece, new polls show the leftwing Syriza political party is gaining ground ahead of June 17 elections.
Syriza politicians oppose austerity measures attached to bailout funding, and a strong showing in the upcoming elections could lead to a coalition government rejecting austerity, which could potentially open the door to a Greek exit from the eurozone.
Some good news emerged out of Europe.
The European Union Commission reported that debt-ridden eurozone financial institutions may be recapitalized directly through the continent’s permanent bailout fund.
Meanwhile in the U.K., net lending to individuals inched up higher in April, rising by GBP1.4 billion, above expectations for a GBP1.2 billion increase.
U.K. mortgage approvals, meanwhile, edged higher last month as well.
The greenback was up against the pound, with GBP/USD down 0.05% and trading at 1.5470.
The U.S. currency was down against the yen, with USD/JPY trading down 0.37% at 78.78, and flat against the Swiss franc, with USD/CHF trading at 0.9710.
The dollar was mixed against its cousins in Canada, Australia and New Zealand, with USD/CAD down 0.07% at 1.0294, AUD/USD down 0.02% at 0.9702 and NZD/USD flat at 0.7530.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.07% at 83.10.
Later Thursday in the U.S., the ADP National Employment Report will be released, shedding light on private-sector unemployment rates in the U.S. and serve as a precursor to Friday’s official May jobs report.
U.S. gross domestic product data will publish, as will weekly initial jobless claims.
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