Investing.com - The dollar traded steady to higher against most major currencies on Tuesday after European political uncertainty sparked a euro and equities selloff that sent investors scrambling for the greenback in search of a safe harbor.
The euro slid against the dollar in Asian trading Tuesday, extending losses sustained in U.S. and European sessions though steadier, with EUR/USD down 0.03% and trading at 1.3152.
In France, President Nicolas Sarkozy trailed Socialist challenger François Hollande in Sunday's elections, leaving both candidates headed to a runoff in May.
The news worried markets that Hollande would reverse current austerity measures should he win, thus leaving the fate of the continent's recovery up in the air.
In the Netherlands, a breakdown in budget negotiations prompted Dutch Prime Minister Mark Rutte to offer his cabinet's resignation to the Dutch queen, who will consider it, although the government will keep plugging away to find an exit strategy from the impasse.
Meanwhile in Germany, Europe's largest economy, the country's important manufacturing sector may be suffering from ebbing demand in the continent's crisis-wracked periphery countries.
Markit's manufacturing Purchasing Managers Index for Germany dropped to 46.3 in April from 48.4 in March, far below expectations for an increase to 49.0.
The index hasn't fallen that low since 2009, and sluggish manufacturing data for the eurozone as a whole and concerns China is still showing signs of cooling helped fuel the risk-off session that extended into Asia on Tuesday.
The greenback, meanwhile, was up against the pound, with GBP/USD down 0.08% and trading at 1.6120.
The U.S. currency was down against the yen, with USD/JPY trading down 0.05% at 81.14, and up against the Swiss franc, with USD/CHF up 0.01% and trading at 0.9138.
The dollar was mixed against its counterparts in Canada, Australia and New Zealand, with USD/CAD up 0.07% at 0.9920, AUD/USD up 0.02% at 1.0322 and NZD/USD down 0.07% at 0.8129.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.02% at 79.49.
Later Tuesday, the U.S. will produce data on house price inflation, a key indicator of the housing industry’s health, data on new home sales as well as the Conference Board report on consumer confidence.
The euro slid against the dollar in Asian trading Tuesday, extending losses sustained in U.S. and European sessions though steadier, with EUR/USD down 0.03% and trading at 1.3152.
In France, President Nicolas Sarkozy trailed Socialist challenger François Hollande in Sunday's elections, leaving both candidates headed to a runoff in May.
The news worried markets that Hollande would reverse current austerity measures should he win, thus leaving the fate of the continent's recovery up in the air.
In the Netherlands, a breakdown in budget negotiations prompted Dutch Prime Minister Mark Rutte to offer his cabinet's resignation to the Dutch queen, who will consider it, although the government will keep plugging away to find an exit strategy from the impasse.
Meanwhile in Germany, Europe's largest economy, the country's important manufacturing sector may be suffering from ebbing demand in the continent's crisis-wracked periphery countries.
Markit's manufacturing Purchasing Managers Index for Germany dropped to 46.3 in April from 48.4 in March, far below expectations for an increase to 49.0.
The index hasn't fallen that low since 2009, and sluggish manufacturing data for the eurozone as a whole and concerns China is still showing signs of cooling helped fuel the risk-off session that extended into Asia on Tuesday.
The greenback, meanwhile, was up against the pound, with GBP/USD down 0.08% and trading at 1.6120.
The U.S. currency was down against the yen, with USD/JPY trading down 0.05% at 81.14, and up against the Swiss franc, with USD/CHF up 0.01% and trading at 0.9138.
The dollar was mixed against its counterparts in Canada, Australia and New Zealand, with USD/CAD up 0.07% at 0.9920, AUD/USD up 0.02% at 1.0322 and NZD/USD down 0.07% at 0.8129.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.02% at 79.49.
Later Tuesday, the U.S. will produce data on house price inflation, a key indicator of the housing industry’s health, data on new home sales as well as the Conference Board report on consumer confidence.