Forexpros – The U.S. dollar plunged against its major counterparts as improved manufacturing numbers in the U.S. and China triggered a flight from safety.
During mid session U.S. trade, the greenback plunged against the euro, with EUR/USD adding 0.96% to 1.3059.
The single currency gained strength on a bullish German economic report and a reversal of year end trades from the safety of the greenback.
The U.S. dollar was down against the pound, with GBP/USD advancing 0.96% to hit 1.5660.
The Institute for Supply Management’s factory index advanced to 53.9 with 50 indicating economic expansion sending investors into riskier assets.
U.S. employers added 150,000 jobs in December per the median estimate of 72 economists. The official report will be released on January 6th.
The German Federal Labor Agency reported that German unemployment fell in December less than forecasted adding to the euro optimism.
Earlier, the euro bounced from a 10 year low against the yen on increasing euro zone bullishness.
Meanwhile, the greenback was lower against the yen and down against the Swiss franc with USD/JPY off by 0.29% to 76.67 and USD/CHF dropping 0.92% to hit 0.930.
In addition the greenback was lower against its Canadian, Australian and New Zealand cousins with USD/CAD falling 0.80% to hit 1.0108, AUD/USD soaring 1.32% to hit 1.0371 and NZD/USD surging higher by 1.45% to 0.7896.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, fell 0.91% to hit 79.85.
Investors are anxiously awaiting renewed euro zone crisis talks starting on January, 9th as well as U.S. payroll numbers on January 6th.
Forexpros
