Message Posted: 31
||Posted on 7/2/2009 3:54:48 AM|
FOREX-Dollar falls as stocks gain; Europe data dent demand
The dollar fell on Wednesday, as gains in global stocks as well as improved manufacturing activity data in Europe and China, hurt demand for the greenback as a safe haven.
The European data showed a slowing in the deterioration in the euro zone's manufacturing economy for the fourth straight month, indicating the bloc will contract by much less in the second quarter. For story, see [ID:nL1596673]
In China, surveys released on Wednesday also showed a steady recovery in the country's manufacturing sector in June. [ID:nPEK138883]
In the United States, a round of mixed data including readings on the labor, manufacturing and housing sectors, contributed to a bias toward dollar weakness as safe-haven support wanes, analysts said. But they warned trading would remain volatile before a key U.S. labor market reading on Thursday.
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