Investing.com - The U.S. dollar traded lower against a basket of major currencies on Tuesday, following a mixed batch of U.S. economic data, ahead of President Donald Trump’s speech to Congress on Tuesday.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, slipped 0.27% to 100.87 just shy of its session low of 100.77.
The dollar added to losses sustained during early morning trade, after a raft of economic data failed to stop the decline in the greenback as second Q4'16 US GDP missed analysts’ expectations while February US consumer confidence was better than expected.
Gross domestic product (GDP) rose at a 1.9% annual rate in the final three months of 2016, the Commerce Department said on Tuesday in its second estimate for the period. Analysts expected a 2.1% annual rate increase.
The Consumer Confidence Index, which measures consumers’ assessment of current conditions in the U.S., hit 114.8 in February, according to data from The Conference Board. Economist expected the Consumer Confidence index to hit 111 in February.
Despite the raft of economic data, President Donald Trump’s first address to congress at 9 PM EST remains a key event of the day, as investors await further details on the Trump administration’s plans for tax reform, infrastructure spending and healthcare reform.
Momentum in the greenback has waned during the latter half of February, amid a lack of specific policy details on fiscal expansion including tax reform, which are viewed as inflationary and a platform for further dollar upside.
Elsewhere, sterling remained under pressure, following Monday’s reports that Scotland was preparing to call another independence referendum when formal Brexit negotiations are triggered in March.
GBP/USD traded at $1.2427 down 0.1% while EUR/USD gained 0.35% to trade at $1.0622.
The dollar eased nearly 1% to 111.74 yen but held onto gains against its Canadian counterpart. USD/CAD traded higher at $1.3266, up 0.67%.