The U.S. dollar remained flat against the majority of its counterparts as a lack of global economic data and thin trading conditions have left the dollar without a clear direction this week. However, the greenback has gained nearly 3.0% versus the common currency this month as the European debt crisis concerns continued to dominate headlines. Those fears were dampened somewhat overnight following a successful Italian bond auction. Italy sold 9 billion euros of 179-day bills at a rate of 3.251%, down from 6.504% at the previous auction. The nation will hold two more auctions tomorrow. Italian 10-year bond yields dropped 25 basis points to 6.75%, after rising to 7.0% yesterday, the level that spurred Greece, Ireland and Portugal to seek bailouts. Meanwhile, the Canadian dollar rose to its highest level in three week against the greenback as slightly higher equities and oil trading above $100 a barrel boosted the loonie. Expect the U.S. dollar to remain largely range-bound throughout the week, but the ranges may be choppy as liquidity thins further ahead of the New Year holiday.
