Investing.com - The dollar was higher against the euro on Tuesday but slipped against the yen as investors looked ahead to the outcomes of policy meeting by the Federal Reserve and the European Central Bank later in the week.
During European late morning trade, the dollar pushed higher against the euro, with EUR/USD down 0.23% to 1.3067.
The dollar’s gains were kept in check as investors awaited the outcome of Wednesday’s Fed meeting for cues on the direction of monetary policy after recent weak U.S. economic data dampened expectations for an earlier than expected end to the bank’s asset purchase program.
Meanwhile, speculation over an ECB rate cut mounted after official data showed that euro zone unemployment rose to a record in March and another report showed that inflation in the currency bloc fell more-than-expected this month.
The euro zone unemployment rate rose to 12.1% in March, from 12.0% in February, as a further 62,000 people lost their jobs.
The unemployment rate was highest in Spain at 26.7%. Earlier Tuesday data showed that Spain’s recession deepened in the first quarter as the economy contracted by 0.5%, in line with expectations.
A separate report showed that the annual rate of consumer inflation in the euro zone fell to 1.2% in April from 1.7% in March, the lowest level in over three years and well below expectations for a decline to 1.6%.
The dollar fell to session lows against the yen, with USD/JPY shedding 0.32% to trade at 97.44.
The dollar was steady near two-and-a-half month lows against the pound, with GBP/USD dipping 0.01% to 1.5498.
Sterling was little changed after official data showed that U.K. net lending to individuals fell to GBP0.9 billion in March, below expectations for GBP1.3 billion.
A separate report showed that U.K. mortgage approvals rose to 54,000 last month from 52,000 in February, above expectations for 53,000.
The dollar was steady against the Swiss franc, with USD/CHF inching down 0.02% to 0.9363.
The greenback was broadly higher against its Australian, New Zealand and Canadian counterparts, with AUD/USD slipping 0.10% to 1.0339, NZD/USD losing 0.12% to trade at 0.8555 and USD/CAD dipping 0.06% to 1.0107.
In New Zealand, official data showed that building consents dropped 9.1% in March, missing expectations for a 2.0% increase.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.09% to 82.23.
The U.S. was to release data on consumer confidence, a report on manufacturing activity in Chicago and private sector data on house price inflation later in the trading day.
During European late morning trade, the dollar pushed higher against the euro, with EUR/USD down 0.23% to 1.3067.
The dollar’s gains were kept in check as investors awaited the outcome of Wednesday’s Fed meeting for cues on the direction of monetary policy after recent weak U.S. economic data dampened expectations for an earlier than expected end to the bank’s asset purchase program.
Meanwhile, speculation over an ECB rate cut mounted after official data showed that euro zone unemployment rose to a record in March and another report showed that inflation in the currency bloc fell more-than-expected this month.
The euro zone unemployment rate rose to 12.1% in March, from 12.0% in February, as a further 62,000 people lost their jobs.
The unemployment rate was highest in Spain at 26.7%. Earlier Tuesday data showed that Spain’s recession deepened in the first quarter as the economy contracted by 0.5%, in line with expectations.
A separate report showed that the annual rate of consumer inflation in the euro zone fell to 1.2% in April from 1.7% in March, the lowest level in over three years and well below expectations for a decline to 1.6%.
The dollar fell to session lows against the yen, with USD/JPY shedding 0.32% to trade at 97.44.
The dollar was steady near two-and-a-half month lows against the pound, with GBP/USD dipping 0.01% to 1.5498.
Sterling was little changed after official data showed that U.K. net lending to individuals fell to GBP0.9 billion in March, below expectations for GBP1.3 billion.
A separate report showed that U.K. mortgage approvals rose to 54,000 last month from 52,000 in February, above expectations for 53,000.
The dollar was steady against the Swiss franc, with USD/CHF inching down 0.02% to 0.9363.
The greenback was broadly higher against its Australian, New Zealand and Canadian counterparts, with AUD/USD slipping 0.10% to 1.0339, NZD/USD losing 0.12% to trade at 0.8555 and USD/CAD dipping 0.06% to 1.0107.
In New Zealand, official data showed that building consents dropped 9.1% in March, missing expectations for a 2.0% increase.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.09% to 82.23.
The U.S. was to release data on consumer confidence, a report on manufacturing activity in Chicago and private sector data on house price inflation later in the trading day.