The US dollar was mixed in trading vs. most major currencies as US companies cut more jobs than forecast while concerns of a Dubai World debt default have eased. ADP Employer services reported that companies cut 169,000 jobs in November, higher than a forecast cut of 150,000. The Mortgage Bankers Association's index of mortgage applications rose 2.1% over the previous week. Investors will look toward the employment report which will be released later this week for further clues on the economy.
The euro fell against the dollar as US companies cut more jobs than expected. Euro Zone producer prices declined 6.7% in October from the previous year.
Sterling rose against the dollar as the pace of contraction in the UK construction industry slowed and investor concerns about Dubai world eased. Markit Economics released data showing that the purchasing manager's index for construction rose to 47.0 from 46.2 in November.
The Japanese yen fell after Japanese Prime Minister Yukio Hatoyama commented that the currency's strength can't be left unchecked. Chief Cabinet Secretary Hirofumi Hirano said later that Hatoyama wasn't indicating the government is ready to intervene, though investors believe that would be the likely outcome with continued yen appreciation. Recent strength in the currency has helped erode profits of major exporters in Japan. Bank of Japan board member, Miyako Suda, said in a speech that the central bank is open to taking steps to support the economy.
The Canadian dollar stayed steady against the dollar as gold prices surged to a new high. Gold for February delivery touched $1,218.40 an ounce. A fall in crude oil prices limited the currency's gains.
The Australian and New Zealand dollars remained firm against the dollar amid a rise in commodity prices. Gold, Australia's third largest export saw its prices advance to a record high. New Zealand based Fonterra Cooperative Group Ltd., the world's largest dairy producer, said whole milk powder prices at auction increased to a 16-month high.
10-Year Treasury Note Yield: 3.2877%
Dow Jones Industrial Average: 10,459.33 -12.25