subject: The euro against the dollar still rising, but caution is [print this page] The euro against the dollar still rising, but caution is
The euro continued its rebound against the dollar Wednesday, rising briefly above $ 1.23 after a cash allowance of less than expected from the ECB, but traders remained anxious while waiting for the monthly report on the U.S. employment.
Around 1600 GMT (1800 Paris), the euro stood at 1.2292 dollars against 1.2186 dollars late Tuesday 2100 GMT.
Facing the yen, the euro went back to 108.97 yen also cons 107.98 yen late Tuesday.
The dollar remained almost stable against the yen at 88.56 yen 88.57 yen against the previous day.
The ECB Wednesday allocated a record amount of liquidity in three months to banks in the euro area, which must repay a loan giant Thursday of 442 billion euros.
A total of 171 banks in the euro area have received 131.9 billion of liquidity at a fixed rate of 1%, while some analysts predicted that the transaction would exceed 250 billion euros.
"The fact that European banks are not desperate as to pay the fixed rate of 1% proposed by the ECB for liquidity can be seen as a positive sign for the health of European banking industry", commented Adam Cole, an analyst RBC Capital Markets.
However, "such as financial institutions have had much time to prepare for the end (of the loan giant) over 12 months, 131.9 billion euros is still a considerable amount," observed Jane Foley, analyst at Forex.com.
"It remains possible that some banks face difficulties in financing markets, and these difficulties should remain as banking institutions have not clearly communicated their credit, Ms. Foley warned.
Moreover, currency traders remained anxious following the publication of an unexpected drop of net job creation in the private sector in the U.S. in June, according to figures released Wednesday, a bad omen for the official employment figures and unemployment to be published Friday.
The private sector created only 13,000 jobs more than it was deleted (in seasonally adjusted), down 77% from net new jobs the previous month.
Moreover, economic activity in the Chicago region slowed slightly in June, according to the purchasing managers' index of association ISM released Wednesday.
The ISM-Chicago fell 0.6 points from May, to $ 59.1, adjusted for seasonal variations, a decrease in line with expectations of analysts.
Around 1600 GMT, the British pound fell against the euro at 82.08 pence per euro, as against the greenback at 1.4975 dollars.
The franc regained his breath against the euro at 1.3239 Swiss francs per euro, after its successive records. The Swiss currency progressed however always against the dollar at 1.0769 Swiss francs to the dollar, after reaching 1.0752 Swiss francs to 1500 GMT, its strongest level in nearly two months.
The ounce of gold ended at 1244 dollars at auction in the evening cons 1234.50 dollars Tuesday.
The Chinese yuan finished at 6.7818 yuan to one U.S. dollar against 6.7977 yuan yesterday.
