Investing.com - The euro pushed higher against the other major currencies on Tuesday, amid growing expectations that Federal Reserve Chairman Ben Bernanke could indicate the need for further stimulus in testimony to the U.S. Senate later in the day.
During European late morning trade, the euro was higher against the U.S. dollar, with EUR/USD up 0.17% to 1.2292.
The euro firmed up ahead of testimony by Fed Chairman Ben Bernanke later Tuesday and Wednesday, amid ongoing speculation over whether the U.S. central bank will introduce more easing to stimulate growth.
Expectations for another round of quantitative easing were boosted on Monday after official data showed a third consecutive monthly decline in U.S. retail sales in June.
Meanwhile, Spain saw short-term borrowing costs fall at an auction of 12 and 18-month government bonds earlier, but the yield on the country’s 10-year bonds was at 6.87%, remaining close to the critical 7% threshold amid sustained concerns over the country’s finances.
The euro came off a three-and-a-half year low against the pound, with EUR/GBP easing up 0.14% to 0.7859 and gained ground against the yen, with EUR/JPY adding 0.35% to trade at 97.11.
In the U.K., official data showed that consumer price inflation fell to its lowest in more than two-and-a-half year last month, as retailers offered discounts on clothing and shoes to encourage consumers to spend.
The Office for National Statistics said the annual rate of consumer price inflation dropped to 2.4% from 2.8% in May, the lowest level since November 2009. Economists had expected the rate of inflation to remain unchanged.
The yen eased after Japanese Finance Minister Jun Azumi indicated that the government remained prepared to intervene to stem the appreciation of the currency.
The euro remained little changed against the Swiss franc, with EUR/CHF dipping 0.01% to 1.2009.
The euro remained within striking distance of record lows against the Canadian, Australian and New Zealand dollars, with EUR/CAD up 0.19% to 1.2478, EUR/AUD down 0.23% to hit 1.1947 and EUR/NZD gaining 0.19% to 1.5397.
The Australian dollar found support earlier after the minutes of the Reserve Bank of Australia’s July meeting indicated that policymakers are not planning any further rate cuts in the coming months.
Elsewhere, official data showed that consumer price inflation in New Zealand rose less-than-expected in the three months to June, adding to the view that the central bank will keep interest rates on hold in the coming months.
Also Tuesday, data showed that German economic sentiment deteriorated for the third consecutive month in July, as concerns over the euro zone’s ongoing debt crisis continued to weigh.
The ZEW Centre for Economic Research said that its index of German economic sentiment fell to minus 19.6 in July from June’s reading of minus 16.9, but was slightly better than expectations for a decline to minus 20.0.
During European late morning trade, the euro was higher against the U.S. dollar, with EUR/USD up 0.17% to 1.2292.
The euro firmed up ahead of testimony by Fed Chairman Ben Bernanke later Tuesday and Wednesday, amid ongoing speculation over whether the U.S. central bank will introduce more easing to stimulate growth.
Expectations for another round of quantitative easing were boosted on Monday after official data showed a third consecutive monthly decline in U.S. retail sales in June.
Meanwhile, Spain saw short-term borrowing costs fall at an auction of 12 and 18-month government bonds earlier, but the yield on the country’s 10-year bonds was at 6.87%, remaining close to the critical 7% threshold amid sustained concerns over the country’s finances.
The euro came off a three-and-a-half year low against the pound, with EUR/GBP easing up 0.14% to 0.7859 and gained ground against the yen, with EUR/JPY adding 0.35% to trade at 97.11.
In the U.K., official data showed that consumer price inflation fell to its lowest in more than two-and-a-half year last month, as retailers offered discounts on clothing and shoes to encourage consumers to spend.
The Office for National Statistics said the annual rate of consumer price inflation dropped to 2.4% from 2.8% in May, the lowest level since November 2009. Economists had expected the rate of inflation to remain unchanged.
The yen eased after Japanese Finance Minister Jun Azumi indicated that the government remained prepared to intervene to stem the appreciation of the currency.
The euro remained little changed against the Swiss franc, with EUR/CHF dipping 0.01% to 1.2009.
The euro remained within striking distance of record lows against the Canadian, Australian and New Zealand dollars, with EUR/CAD up 0.19% to 1.2478, EUR/AUD down 0.23% to hit 1.1947 and EUR/NZD gaining 0.19% to 1.5397.
The Australian dollar found support earlier after the minutes of the Reserve Bank of Australia’s July meeting indicated that policymakers are not planning any further rate cuts in the coming months.
Elsewhere, official data showed that consumer price inflation in New Zealand rose less-than-expected in the three months to June, adding to the view that the central bank will keep interest rates on hold in the coming months.
Also Tuesday, data showed that German economic sentiment deteriorated for the third consecutive month in July, as concerns over the euro zone’s ongoing debt crisis continued to weigh.
The ZEW Centre for Economic Research said that its index of German economic sentiment fell to minus 19.6 in July from June’s reading of minus 16.9, but was slightly better than expectations for a decline to minus 20.0.