INV: Dollar higher vs. euro, lower vs. yen before Fed, U.S. data
Investing.com - The dollar was lower against the yen on Tuesday and edged higher against the euro as safe haven demand was boosted ahead of a number of significant U.S. economic events later in the week.
During European afternoon trade, the dollar was lower against the yen, with USD/JPY down 0.41% to 90.46.
Investors remained cautious ahead of the outcome of the Federal Reserve’s policy meeting and U.S. data on fourth quarter growth on Wednesday, as well as Friday’s U.S. nonfarm payrolls report.
The greenback pushed higher against the euro, with EUR/USD sliding 0.17% to 1.3432.
Demand for the single currency continued to be supported by optimism that the crisis in the euro zone has turned a corner.
Earlier Tuesday, data showed that German consumer confidence is set to rebound in February, adding to signs of a recovery in the bloc’s largest economy. The forward looking Gfk index of consumer confidence ticked up to 5.8 for February, from an upwardly revised 5.7 in January.
The greenback came off five-month highs against the pound, with GBP/USD rising 0.26% to 1.5734. Sterling’s gains looked set to remain limited as concerns over the U.K. economic outlook and prospects for more easing by the Bank of England weighed.
The greenback was weaker against the Swiss franc, with USD/CHF down 0.23% to 0.9241.
The greenback was broadly lower against its Canadian, Australian and New Zealand counterparts, with USD/CAD dipping 0.06% to 1.0056, AUD/USD up 0.28% to 1.0445 and NZD/USD rising 0.22% to 0.8358.
The Australian dollar found support after the National Bank of Australia said that its index of business confidence improved to 3 in December from a reading of minus 9 the previous month.
In New Zealand, official data showed that the trade surplus widened to NZD486 million in December, well above forecasts for a surplus of NZD110 million.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, dipped 0.05% to 79.85.
The U.S. was to release reports on house price inflation and consumer confidence later in the trading day.
