Investing.com - The U.S. dollar was mixed against its major counterparts on Tuesday, as better-than-expected German economic growth data slightly lifted market sentiment but concerns over political turmoil in Greece continued to weigh.
During European morning trade, the dollar was lower against the euro, with EUR/USD rising 0.19% to hit 1.2846.
The euro found support earlier after preliminary data showed that Germany’s economy expanded more-than-expected in the first quarter, indicating that the euro zone’s largest economy is weathering the effects of the crisis in the region.
Germany’s gross domestic product grew by a seasonally adjusted 0.5% in the three months to March, above expectations for a growth of 0.1%. German GDP contracted by an unrevised 0.2% in the fourth quarter of 2011.
But investors remained cautious ahead of a fresh round of Greek cross party talks aimed at forming a government later in the day, after a more than week-long political stalemate fuelled fears over the country’s ability to uphold its financial commitments and its possible exit from the euro zone.
Markets were also jittery after Moody’s Investors Service earlier announced widespread downgrades on Italy’s banking sector, amid concerns over limited access to market funding.
The greenback was higher against the pound, with GBP/USD edging down 0.12% to hit 1.6073.
Official data showed earlier that the U.K.’s trade deficit remained unexpectedly unchanged at GBP8.6 billion in March. Analysts had expected the trade deficit to narrow to GBP8.4 billion.
Elsewhere, the greenback was steady against the yen but lower against the Swiss franc, with USD/JPY inching up 0.04% to hit 79.88 and USD/CHF retreating 0.20% to hit 0.9349.
The greenback was mixed against its Canadian, Australian and New Zealand counterparts, with USD/CAD declining 0.23% to hit 1.0013, AUD/USD rising 0.33% to hit 0.9989 and NZD/USD declining 0.15% to hit 0.7754.
Earlier in the day, the minutes of the Reserve Bank of Australia’s May meeting said that “the risks emanating from Europe continue to cloud the global outlook,” adding that “inflation is likely to remain in the lower half of the target range over the foreseeable future.”
On May 1, the RBA cut its benchmark interest rate to a two-year low of 3.75% to help boost growth.
But concerns over slowing Chinese growth weighed on commodity-linked currencies, after data showed the country’s foreign direct investment inflows dipped 2.4% in April, posting a fourth consecutive loss after a 2.8% decline the previous month.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.05%, at 80.75.
Later in the day, the U.S. was to publish official data on retail sales and consumer price inflation, as well as a report on manufacturing activity in New York.
During European morning trade, the dollar was lower against the euro, with EUR/USD rising 0.19% to hit 1.2846.
The euro found support earlier after preliminary data showed that Germany’s economy expanded more-than-expected in the first quarter, indicating that the euro zone’s largest economy is weathering the effects of the crisis in the region.
Germany’s gross domestic product grew by a seasonally adjusted 0.5% in the three months to March, above expectations for a growth of 0.1%. German GDP contracted by an unrevised 0.2% in the fourth quarter of 2011.
But investors remained cautious ahead of a fresh round of Greek cross party talks aimed at forming a government later in the day, after a more than week-long political stalemate fuelled fears over the country’s ability to uphold its financial commitments and its possible exit from the euro zone.
Markets were also jittery after Moody’s Investors Service earlier announced widespread downgrades on Italy’s banking sector, amid concerns over limited access to market funding.
The greenback was higher against the pound, with GBP/USD edging down 0.12% to hit 1.6073.
Official data showed earlier that the U.K.’s trade deficit remained unexpectedly unchanged at GBP8.6 billion in March. Analysts had expected the trade deficit to narrow to GBP8.4 billion.
Elsewhere, the greenback was steady against the yen but lower against the Swiss franc, with USD/JPY inching up 0.04% to hit 79.88 and USD/CHF retreating 0.20% to hit 0.9349.
The greenback was mixed against its Canadian, Australian and New Zealand counterparts, with USD/CAD declining 0.23% to hit 1.0013, AUD/USD rising 0.33% to hit 0.9989 and NZD/USD declining 0.15% to hit 0.7754.
Earlier in the day, the minutes of the Reserve Bank of Australia’s May meeting said that “the risks emanating from Europe continue to cloud the global outlook,” adding that “inflation is likely to remain in the lower half of the target range over the foreseeable future.”
On May 1, the RBA cut its benchmark interest rate to a two-year low of 3.75% to help boost growth.
But concerns over slowing Chinese growth weighed on commodity-linked currencies, after data showed the country’s foreign direct investment inflows dipped 2.4% in April, posting a fourth consecutive loss after a 2.8% decline the previous month.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.05%, at 80.75.
Later in the day, the U.S. was to publish official data on retail sales and consumer price inflation, as well as a report on manufacturing activity in New York.