Forex - U.S. dollar mostly flat in end of year trade

Forexpros - The U.S. dollar was slightly higher in lack luster, end of year trade on Friday during mid session London action.

During mid session London trade, the greenback eased higher against the euro, with EUR/USD slipping 0.077% to 1.2951.

The single currency has struggled against a back drop of continued misses by the European Central Bank to contain the regions debt crisis over the last year.

The greenback was down against the pound, with GBP/USD advancing 0.45% to hit 1.5486.

Light Christmas and New Years holiday volume added to the slow session as traders relaxed in preparation for 2012

Italy's Treasury long term bond auction missed targets yesterday increasing debt fears weighing on the single currency.

Peter Rosenstreich of Swissquote Bank exclaimed to Bloomberg, "The dark clouds (for the euro ) are getting darker. We are seeing death by a thousand cuts."

The last 24 months of euro zone official meetings have failed to control the debt crisis.

The region has seen bailouts of Greece, Portugal and Ireland with trouble brewing in Spain and Italy, sending investors to the safe haven of the greenback.

Although a gauge of euro zone manufacturing activity rose from 46.4 to 46.9 in December, readings below 50 still indicate economic contraction providing little hope for the region.

Earlier, the euro fell to a 10 year low against the yen on fears of further cash injections by the European Central Bank

Meanwhile, the greenback was higher against the yen and down against the Swiss franc with USD/JPY down by 0.33% to 77.38 and USD/CHF dropping 0.083% to hit 0.94.

In addition the greenback was higher against its Canadian, counterpart but lower against its Australian and New Zealand cousins with USD/CAD climbing 0.07% to hit 1.0207, AUD/USD advancing 0.42% to hit 1.0179 and NZD/USD easing higher by 0.30% to 0.7736.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, slipped 0.14% to hit 80.69.

Investors are anxiously awaiting renewed euro zone crisis talks starting on January, 9th.





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