Investing.com - The dollar turned higher against the euro on Tuesday after the closely watched ZEW index of German economic expectations came in below expectations in May.
During European late morning trade, the euro trimmed gains against the dollar, with EUR/USD pulling back from session highs of 1.3029 to trade at 1.2980, up just 0.03%.
The ZEW index of German economic sentiment ticked up to 36.4 from 36.3 in April, well below expectations for a reading of 38.3.
The index of current conditions fell to 8.9 from 9.2 in April, indicating that the German economy could struggle to recover from a 0.5% contraction in the fourth quarter.
A separate report showed that euro zone industrial production rose by a seasonally adjusted 1% in March, more than double expectations for a 0.4% increase.
The euro briefly rose to session highs after Spain saw borrowing costs fall to the lowest level since 2010 at an auction of 12-month government bonds.
Elsewhere, the dollar was slightly lower against the yen, with USD/JPY dipping 0.09% to 101.63.
The dollar eased against the yen on Tuesday as investors took profits after recent strong gains, ahead of a raft of U.S. economic data later in the week, including reports on industrial production, housing starts, inflation and economic sentiment.
The dollar edged higher against the pound, with GBP/USD dipping 0.07% to 1.5288.
The dollar was lower against the Swiss franc with USD/CHF shedding 0.21% to trade at 0.9554.
The greenback was broadly higher against its Australian, New Zealand and Canadian counterparts, with AUD/USD down 0.18% to 0.9933, NZD/USD easing up 0.13% to 0.8257 and USD/CAD rising 0.14% to 1.0119.
The Aussie fell further below parity against the greenback after the Australian government’s annual budget statement showed that the deficit would be AUD18 billion in the coming fiscal year.
Australia’s Treasurer Wayne Swann said fiscal discipline would give the Reserve Bank of Australian more scope to cut rates.
In New Zealand, official data showed that retail sales rose 0.5% in the first quarter, falling short of expectations for a 0.8% increase.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, edged down 0.06% to 83.30.
During European late morning trade, the euro trimmed gains against the dollar, with EUR/USD pulling back from session highs of 1.3029 to trade at 1.2980, up just 0.03%.
The ZEW index of German economic sentiment ticked up to 36.4 from 36.3 in April, well below expectations for a reading of 38.3.
The index of current conditions fell to 8.9 from 9.2 in April, indicating that the German economy could struggle to recover from a 0.5% contraction in the fourth quarter.
A separate report showed that euro zone industrial production rose by a seasonally adjusted 1% in March, more than double expectations for a 0.4% increase.
The euro briefly rose to session highs after Spain saw borrowing costs fall to the lowest level since 2010 at an auction of 12-month government bonds.
Elsewhere, the dollar was slightly lower against the yen, with USD/JPY dipping 0.09% to 101.63.
The dollar eased against the yen on Tuesday as investors took profits after recent strong gains, ahead of a raft of U.S. economic data later in the week, including reports on industrial production, housing starts, inflation and economic sentiment.
The dollar edged higher against the pound, with GBP/USD dipping 0.07% to 1.5288.
The dollar was lower against the Swiss franc with USD/CHF shedding 0.21% to trade at 0.9554.
The greenback was broadly higher against its Australian, New Zealand and Canadian counterparts, with AUD/USD down 0.18% to 0.9933, NZD/USD easing up 0.13% to 0.8257 and USD/CAD rising 0.14% to 1.0119.
The Aussie fell further below parity against the greenback after the Australian government’s annual budget statement showed that the deficit would be AUD18 billion in the coming fiscal year.
Australia’s Treasurer Wayne Swann said fiscal discipline would give the Reserve Bank of Australian more scope to cut rates.
In New Zealand, official data showed that retail sales rose 0.5% in the first quarter, falling short of expectations for a 0.8% increase.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, edged down 0.06% to 83.30.