Investing.com - The U.S. dollar was lower against the euro on Tuesday following data showing a significant improvement in German economic sentiment this month, while investors looked ahead to the upcoming Federal Reserve policy meeting.
During European morning trade, the dollar was lower against the euro, with EUR/USD rising 0.18% to 1.2963.
The ZEW Centre for Economic Research said that its index of German economic sentiment increased by 22.6 points to 6.9 this month, from a reading of minus 15.7 in November and the first positive reading since May.
The euro had firmed up earlier in the session as concerns over political uncertainty in Italy eased after Italian Prime Minister Mario Monti played down fears over an imminent resignation on Monday, saying he was focused on "completing his mandate" before 2013 elections.
Meanwhile, expectations that the U.S. central bank would announce more monetary easing measures at the conclusion of its two-day policy meeting on Wednesday kept the dollar trading in tight ranges.
The greenback was little changed against the pound, with GBP/USD inching up 0.02% to 1.6078.
The greenback edged higher against the yen, with USD/JPY rising 0.16% to 82.48 and remained almost unchanged against the Swiss franc, with USD/CHF edging up 0.04% to 0.9338.
The greenback was mixed against its Canadian, Australian and New Zealand counterparts, with USD/CAD adding 0.10% to trade at 0.9873, AUD/USD inching up 0.01% to 1.0488 and NZD/USD climbing 0.34% to 0.8376.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, dipped 0.08% to 80.38.
The U.S. was to release government data on the trade balance later in the session.
During European morning trade, the dollar was lower against the euro, with EUR/USD rising 0.18% to 1.2963.
The ZEW Centre for Economic Research said that its index of German economic sentiment increased by 22.6 points to 6.9 this month, from a reading of minus 15.7 in November and the first positive reading since May.
The euro had firmed up earlier in the session as concerns over political uncertainty in Italy eased after Italian Prime Minister Mario Monti played down fears over an imminent resignation on Monday, saying he was focused on "completing his mandate" before 2013 elections.
Meanwhile, expectations that the U.S. central bank would announce more monetary easing measures at the conclusion of its two-day policy meeting on Wednesday kept the dollar trading in tight ranges.
The greenback was little changed against the pound, with GBP/USD inching up 0.02% to 1.6078.
The greenback edged higher against the yen, with USD/JPY rising 0.16% to 82.48 and remained almost unchanged against the Swiss franc, with USD/CHF edging up 0.04% to 0.9338.
The greenback was mixed against its Canadian, Australian and New Zealand counterparts, with USD/CAD adding 0.10% to trade at 0.9873, AUD/USD inching up 0.01% to 1.0488 and NZD/USD climbing 0.34% to 0.8376.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, dipped 0.08% to 80.38.
The U.S. was to release government data on the trade balance later in the session.