Forex Pros – The U.S. dollar was broadly higher against its major rivals during volatile trade on Monday, amid renewed concerns over sovereign debt contagion in the euro zone. During European early afternoon trade, the greenback was up against the euro, with EUR/USD tumbling 0.65% to hit 1.3153. Concerns centered on speculation that the rescue fund created by the International Monetary Fund and the European Union could run out if either Spain or Portugal followed Ireland and requested assistance. Elsewhere, the greenback was down against the pound with GBP/USD slipping 0.02% to hit 1.5588. Earlier in the day, official data showed that net lending to individuals in the U.K. rose more-than-expected in October, while mortgage approvals fell to their lowest level since February. Meanwhile, the greenback was up against the yen but down against the Swiss franc, with USD/JPY rising 0.16% to hit 84.21 and USD/CHF shedding 0.02% to hit 1.0029. Earlier Monday, official data showed that Japan’s retail sales fell significantly more-than-expected in October after a stimulus program ended and tobacco tax was increased. Elsewhere the greenback was down against its Canadian counterpart but up against its Australian and New Zealand cousins, with USD/CAD slipping 0.01% to hit 1.0214, AUD/USD shedding 16% to hit 0.9630 and NZD/USD falling 0.34% to hit 0.7473. Also Monday, official data showed that New Zealand’s trade deficit narrowed significantly more-than-expected in October. The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.37%. On Sunday, European Union finance ministers endorsed a EUR85 billion loan package to prop up Ireland’s banking sector and economy. Ireland said the emergency loans would run for an average of seven and a half years, at an interest rate of 6%, lower than some had expected.

Source