Investing.com - The dollar trimmed gains against most of the other major currencies on Tuesday, after data showed that U.S. consumer confidence deteriorated this month, while markets awaited the conclusion of the Federal Reserve's policy meeting this week.
EUR/USD was down 0.33% to 1.1051 from Monday’s two-week highs of 1.1128.
The Conference Board, a market research group, said its index of consumer confidence fell to 90.9 this month from a downwardly revised 99.8 in June. Economists had forecast a reading of 100.0.
A less optimistic outlook for the labor market, as well as uncertainty and volatility in financial markets prompted by the situation in Greece and China sapped investor sentiment, the report said.
Other reports earlier Tuesday showed that U.S. house price growth stalled in May, while activity in the service sector picked up this month.
Investors were looking ahead to Wednesday’s Fed statement to see if policymakers would give any indication on the timing of an initial rate hike.
Fed Chair Janet Yellen has said the central bank could raise rates as soon as September if the economy continues to improve as expected.
The U.S. was to release figures on second quarter growth on Thursday, which were expected to show that the economy rebounded following a contraction in the first quarter following an unusually harsh winter.
USD/JPY rose 0.25% to 123.55, recovering from Monday’s lows of 123.00.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.26% to 96.89, after rising to highs of 97.08 earlier in the session.
The dollar was higher against the Swiss franc, with USD/CHF up 0.20% to 0.9647, but still lower against the pound after data showed that U.K. economic growth accelerated in the second quarter.
Official data showed that the U.K. economy expanded by 0.7% in the three months to June, up from 0.4% in the first three months of this year.
On a year-over-year basis, gross domestic product grew 2.6%, slowing from 2.9% in the first quarter.
GBP/USD was up 0.26% to 1.5601 after falling to lows of 1.5529 ahead of the data.
The commodity linked currencies moved higher, with AUD/USD rising 0.63% to 0.7314, off Tuesday’s six year lows, while NZD/USD rallied 1.14% to trade at 0.6679. USD/CAD slid 0.36% to 1.2991.
Volatility in Chinese equity markets has roiled the Aussie, because of the country’s strong trade links to China.