Investing.com - The dollar moved lower against the other major currencies on Tuesday, but remained supported by Friday’s strong U.S. jobs report, while investors turned their attention to Friday’s U.S. retail sales data for further indications on the strength of the economy.
EUR/USD rose 0.24% to 1.1112.
The greenback remained broadly supported after Friday’s upbeat U.S. nonfarm payrolls report boosted expectations for a rate hike by the Federal Reserve before the end of the year.
Earlier Tuesday, preliminary data showed that U.S. nonfarm productivity dropped by 0.5% in the second quarter, disappointing expectations for a 0.4% rise, after a 0.6% slip in the three months to March.
GBP/USD slid 0.35% to fresh one-month lows of 1.2993 after the U.K. Office for National Statistics said manufacturing production decreased by 0.3% in June, worse than expectations for a decline of 0.2%.
On an annualized basis, manufacturing production rose 0.9% in June, worse than forecasts for a 1.3% increase.
The report also showed that industrial production inched up by 0.1% in June, in line with forecasts. Year-on-year, industrial production increased by 1.6% in June, matching forecasts.
The pound also weakened after a Bank of England policymaker said that more quantitative easing may be necessary if the U.K. economic decline worsens.
"Bank rate can be cut further, closer to zero, and quantitative easing can be stepped up," Ian McCafferty, an external member of the Monetary Policy Committee, wrote in an op-ed piece for the Times.
USD/JPY dropped 0.56% to trade at 101.88, while USD/CHF held steady at 0.9826.
The Australian and New Zealand dollars moved higher, with AUD/USD pu 0.37% at 0.7679 and with NZD/USD gaining 0.42% to 0.7169.
The National Australia Bank reported on Tuesday that its business confidence index fell to 4 in July from a reading of 6 the previous month.
Elsewhere, USD/CAD slipped 0.16% to trade at 1.3135.
The commodity currencies regained some ground as oil prices bounced off session lows ahead of weekly data on U.S. stockpiles of crude and refined products.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.18% at 96.12, off session highs of 96.47.