Investing.com - The U.S. dollar was mixed against the other major currencies on Tuesday, after U.S. data showed that consumer prices rose more-than-expected last month, while risk sentiment improved amid speculation over a 'soft' bailout for Spain.
During European afternoon trade, the dollar was lower against the euro, with EUR/USD up 0.77% to 1.3047.
The U.S. Labor Department said consumer prices rose by 0.6% in September, above expectations for a 0.5% gain on the back of higher gasoline prices.
Meanwhile, sentiment strengthened after two senior German lawmakers indicated that they would support a Spanish application for a ‘precautionary credit line’ from the European Stability Mechanism, euro zones permanent bailout fund.
On Monday, Spanish government officials said they were exploring the option of requesting a credit line from the ESM, in order to satisfy the terms of the European Central Bank’s bond buying program, but then not using it, instead waiting for borrowing costs to fall.
The euro also found support after the ZEW Centre said that its closely watched index of German economic sentiment improved to minus 11.5 in October from September’s reading of minus 18.2. Economists had forecast a reading of minus 15.0 this month.
Separately, official data showed that consumer price inflation in the euro zone slowed to 2.6% in September, down from a preliminary estimate of 2.7%.
The greenback was also lower against the pound, with GBP/USD rising 0.30% to 1.6120
In the U.K., official data showed that the annualized rate of CPI dropped to 2.2% in September, the lowest since November 2009, down from 2.5% in August.
The slowdown in inflation will give the Bank of England more leeway to ease monetary policy further, in order to bolster growth in the recession hit economy.
Elsewhere, the greenback was higher against the yen, with USD/JPY up 0.30% to 78.88, but lost ground against the Swiss franc, with USD/CHF down 0.71% to 0.9266.
The greenback was mixed to higher against its Canadian, Australian and New Zealand counterparts, with USD/CAD climbing 0.50% to trade at 0.9857, AUD/USD adding 0.16% to 1.0270 and NZD/USD down 0.62% to 0.8135.
The Australian dollar remained supported after the minutes of the Reserve Bank of Australia’s October meeting indicated that the bank sees scope for further rate cuts, as the outlook for growth was hit by a slowdown in the mining industry.
Meanwhile, official data showed that consumer inflation in New Zealand rose 0.3% in the third quarter, disappointing expectations for a 0.6% increase.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.42% to 79.44.
Later in the day, the U.S. was to release government data on industrial production.
During European afternoon trade, the dollar was lower against the euro, with EUR/USD up 0.77% to 1.3047.
The U.S. Labor Department said consumer prices rose by 0.6% in September, above expectations for a 0.5% gain on the back of higher gasoline prices.
Meanwhile, sentiment strengthened after two senior German lawmakers indicated that they would support a Spanish application for a ‘precautionary credit line’ from the European Stability Mechanism, euro zones permanent bailout fund.
On Monday, Spanish government officials said they were exploring the option of requesting a credit line from the ESM, in order to satisfy the terms of the European Central Bank’s bond buying program, but then not using it, instead waiting for borrowing costs to fall.
The euro also found support after the ZEW Centre said that its closely watched index of German economic sentiment improved to minus 11.5 in October from September’s reading of minus 18.2. Economists had forecast a reading of minus 15.0 this month.
Separately, official data showed that consumer price inflation in the euro zone slowed to 2.6% in September, down from a preliminary estimate of 2.7%.
The greenback was also lower against the pound, with GBP/USD rising 0.30% to 1.6120
In the U.K., official data showed that the annualized rate of CPI dropped to 2.2% in September, the lowest since November 2009, down from 2.5% in August.
The slowdown in inflation will give the Bank of England more leeway to ease monetary policy further, in order to bolster growth in the recession hit economy.
Elsewhere, the greenback was higher against the yen, with USD/JPY up 0.30% to 78.88, but lost ground against the Swiss franc, with USD/CHF down 0.71% to 0.9266.
The greenback was mixed to higher against its Canadian, Australian and New Zealand counterparts, with USD/CAD climbing 0.50% to trade at 0.9857, AUD/USD adding 0.16% to 1.0270 and NZD/USD down 0.62% to 0.8135.
The Australian dollar remained supported after the minutes of the Reserve Bank of Australia’s October meeting indicated that the bank sees scope for further rate cuts, as the outlook for growth was hit by a slowdown in the mining industry.
Meanwhile, official data showed that consumer inflation in New Zealand rose 0.3% in the third quarter, disappointing expectations for a 0.6% increase.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.42% to 79.44.
Later in the day, the U.S. was to release government data on industrial production.