Forexpros - The U.S. dollar was broadly lower against its major counterparts on Tuesday, as market sentiment strengthened amid sustained hopes for fresh interventions by world central banks, although investors remained cautious ahead of key data from the euro zone and the U.S. During European morning trade, the dollar was lower against the euro, with EUR/USD rising 0.30% to 1.2369. Hopes for fresh action from the European Central Bank to shore up growth continued to support the single currency, while recent weak data out of China and Japan added to speculation that other central banks may turn to fresh easing measures. The euro also found support after official data earlier showed that Germany’s economy slowed less-than-expected in the second quarter, as exports and household spending helped to fend off the impact of the sovereign debt crisis on Europe’s largest economy. German gross domestic product rose 0.3% in the three months to June, beating expectations for a 0.2% rise and following an increase of 0.5% in the first quarter. A separate report showed that France’s economy stagnated in the second quarter, beating expectations for a 0.1% contraction. The greenback was also lower against the pound, with GBP/USD adding 0.17% to 1.5711. The pound strengthened after official data showed that consumer prices in the U.K. rose more than expected in July, advancing 2.6% after a 2.4% increase the previous month. Analysts had expected consumer prices to rise 2.3% in July. Core consumer prices, which exclude volatile items, rose 2.3%, beating expectations for a 2.1% increase. Elsewhere, the greenback was higher against the yen, with USD/JPY adding 0.28% to hit 78.53, but lower against the Swiss franc, with USD/CHF dropping 0.32% to trade at 0.9709. The yen came under pressure after the minutes of the Bank of Japan’s latest policy meeting showed that board members weren’t ruling out any options to boost the economy. The report came a day after official data showed that Japan’s economy grew 0.3% in the three months to June, just half as much as expectations for a 0.6% expansion, from an upwardly revised 1.2% in the first quarter as export demand was hit by the euro zone debt crisis. The greenback was moderately lower against its Canadian, Australian and New Zealand counterparts, with USD/CAD easing 0.04% to 0.9922, AUD/USD edging up 0.09% to 1.0527 and NZD/USD adding 0.09% to trade at 0.8096. Official data showed earlier that retail sales in New Zealand, rose far more than expected in the second quarter, climbing 1.5%, while core retail sales, which exclude automobiles and gas stations, rose 0.9% in the three months to June, less than the expected 1% increase. In Australia, industry data showed that the index for business confidence improved to 4 in July from a reading of minus 3 the previous month. The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, fell 0.17% to 82.33. Later in the day, the euro zone was to release official data on industrial production as well as preliminary data on second quarter gross domestic product. In addition, the ZEW Centre for Economic Research was to publish a report on economic sentiment in Germany and throughout the single currency bloc. The U.S. was to publish official data on retail sales and producer price inflation, followed by data on business inventories.

Source