Investing.com - The dollar moved higher against a basket of other major currencies on Tuesday after data showed that U.S. consumer confidence and new homes sales both hit six year highs, bolstering the outlook for the wider recovery.
The dollar was boosted after data showed that the CB consumer confidence index jumped to 85.2 in June from 83.0 last month. It was the highest reading since January 2008.
Another report showed that the number of new home sales also rose to a six-year high, surging 18.6% in May to an annual rate of 504,000. It was the highest level since May 2008 and the largest monthly increase since January 1992.
EUR/USD dipped 0.03% to 1.3598. The pair was trading at around 1.3615 before the release of the data.
In the euro zone, data on Tuesday showed that German business confidence deteriorated this month, amid concerns about the impact of crises in Iraq and Ukraine.
The German Ifo business climate index fell to a six-month low of 109.7 this month from 110.4 in May and compared to estimates of 110.3.
Elsewhere, the dollar rose to session highs against the yen, with USD/JPY up 0.18% to 102.11.
The pound touched fresh session lows, with GBP/USD down 0.31% to 1.6975.
Sterling fell against the dollar and the euro earlier Tuesday after dovish comments by Bank of England Governor Mark Carney tempered expectations for a U.K. rate hike this year.
In testimony to parliament’s Treasury committee, Carney said that recent wage growth has been lower than expected, which could indicate there is more slack in the U.K. labor market than previously thought.
Meanwhile, USD/CHF edged up 0.09% to 0.8950.
The Australian dollar extended losses, with AUD/USD down 0.53% to 0.9373, while NZD/USD lost 0.33% to trade at 0.8682. The Canadian dollar eased back from five-and-a-half month highs, with USD/CAD edging up 0.08% to 1.0742.
The US Dollar Index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.11% to 80.43.