Investing.com - The U.S. dollar lower against most major currencies on Tuesday after Monday's speculation the Federal Reserve will decide at a monetary policy this week to keep stimulus programs in place extended into Tuesday.
A stronger euro enticed investors out of the dollar as well.
In U.S. trading on Tuesday, EUR/USD was up 0.54% at 1.3170.
The euro has weakened in recent sessions amid expectations that the ECB will trim interest rates, though now that such a possibility has been priced into the market, the euro gained on sentiments that the eurozone will benefit afterwards, which gave the single currency room to firm against the greenback.
Data released earlier revealed Tuesday that the eurozone unemployment rate rose to 12.1% in March, from 12.0% in February, in line with expectations.
The eurozone's year-on-year consumer price index rose 1.2% in April, below the 1.7% rate recorded in March and well below expectations for a decline to 1.6%.
Meanwhile in the U.S., a manufacturing barometer for the Midwest region of the country disappointed earlier and further weakened the dollar.
The Chicago purchasing managers’ index dropped 49.0 from 52.4 in March, confounding expectations for a reading of 52.5.
The numbers stoked already growing expectations that the Federal Reserve will keep monetary stimulus tools in place, including its monthly USD85 billion bond-buying program, which weakens the dollar to spur recovery.
The Fed will conclude a two-day monetary policy on Wednesday.
Elsewhere in the U.S., housing and consumer-confidence data came in better than expected though the numbers provided the greenback with little support.
The S&P/Case-Shiller U.S. home price index rose at 9.3% in February from a year earlier, above expectations for a 9.0% increase.
Separately, the Conference Board said its index of U.S. consumer confidence rose to 68.1 in April from 61.9 in March, far above expectations for a reading of 60.8.
The greenback, meanwhile, was down against the pound, with GBP/USD trading up 0.20% at 1.5532.
The dollar was down against the yen, with USD/JPY down 0.35% at 97.42, and down against the Swiss franc, with USD/CHF trading down 0.74% at 0.9296.
The dollar was down against its cousins in Canada, Australia and New Zealand, with USD/CAD down 0.43% at 1.0072, AUD/USD up 0.18% at 1.0371 and NZD/USD trading up 0.08% at 0.8572.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.50% at 81.75.
On Wednesday, all eyes will focus on the Federal Reserve.
Elsewhere, the ADP nonfarm payrolls report on private-sector job creation as well as government data on crude oil stockpiles will hit the wire.
In addition, the Institute of Supply Management is release data on U.S. manufacturing activity.
A stronger euro enticed investors out of the dollar as well.
In U.S. trading on Tuesday, EUR/USD was up 0.54% at 1.3170.
The euro has weakened in recent sessions amid expectations that the ECB will trim interest rates, though now that such a possibility has been priced into the market, the euro gained on sentiments that the eurozone will benefit afterwards, which gave the single currency room to firm against the greenback.
Data released earlier revealed Tuesday that the eurozone unemployment rate rose to 12.1% in March, from 12.0% in February, in line with expectations.
The eurozone's year-on-year consumer price index rose 1.2% in April, below the 1.7% rate recorded in March and well below expectations for a decline to 1.6%.
Meanwhile in the U.S., a manufacturing barometer for the Midwest region of the country disappointed earlier and further weakened the dollar.
The Chicago purchasing managers’ index dropped 49.0 from 52.4 in March, confounding expectations for a reading of 52.5.
The numbers stoked already growing expectations that the Federal Reserve will keep monetary stimulus tools in place, including its monthly USD85 billion bond-buying program, which weakens the dollar to spur recovery.
The Fed will conclude a two-day monetary policy on Wednesday.
Elsewhere in the U.S., housing and consumer-confidence data came in better than expected though the numbers provided the greenback with little support.
The S&P/Case-Shiller U.S. home price index rose at 9.3% in February from a year earlier, above expectations for a 9.0% increase.
Separately, the Conference Board said its index of U.S. consumer confidence rose to 68.1 in April from 61.9 in March, far above expectations for a reading of 60.8.
The greenback, meanwhile, was down against the pound, with GBP/USD trading up 0.20% at 1.5532.
The dollar was down against the yen, with USD/JPY down 0.35% at 97.42, and down against the Swiss franc, with USD/CHF trading down 0.74% at 0.9296.
The dollar was down against its cousins in Canada, Australia and New Zealand, with USD/CAD down 0.43% at 1.0072, AUD/USD up 0.18% at 1.0371 and NZD/USD trading up 0.08% at 0.8572.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.50% at 81.75.
On Wednesday, all eyes will focus on the Federal Reserve.
Elsewhere, the ADP nonfarm payrolls report on private-sector job creation as well as government data on crude oil stockpiles will hit the wire.
In addition, the Institute of Supply Management is release data on U.S. manufacturing activity.