Investing.com - The U.S. dollar traded mixed to higher against most major currencies on Wednesday after spotty data out of Europe bolstered the greenback's safe-haven appeal.
Rising Japanese stock prices, the product of a weaker yen and Bank of Japan policies, also pushed up the dollar.
In Asian trading on Wednesday, EUR/USD was up 0.03% at 1.2944.
Data out of Europe released earlier both exceeded and missed market expectations, leaving investors favoring the safe-and-liquid dollar to ride out the uncertainty though in choppy trading.
The ZEW index of German economic sentiment rose to 36.4 in May from 36.3 in April, well below expectations for a reading of 38.3, which bolstered the dollar's appeal.
The index of current conditions fell to 8.9 from 9.2 in April, which markets interpreted as a sign that the German economy could face headwinds in its quest to rebound from a 0.5% contraction in the fourth quarter.
Inflation in Germany, meanwhile, did not surprise.
The country's consumer price index contracted 0.5 % in April from March and rose 1.2% from April of last year, both figures in line with expectations.
Elsewhere, Eurostat, the European Union's statistics office, reported that industrial production in the euro area rose by 1% in March from February, more than double expectations for a 0.4% increase.
Meanwhile in the U.S., the National Federation of Independent Business reported earlier that its small-business optimism index rose to 92.1 in April from 89.5 in March.
Analysts were expecting a reading of 89.8, and the numbers fanned sentiments the Federal Reserve may be closer to scaling back stimulus tools that weaken the dollar to spur recovery.
Also in the U.S., import prices dropped 0.5% in March, meeting market expectations, while export prices declined 0.7%, according to the Bureau of Labor Statistics.
The greenback, meanwhile, was down against the pound, with GBP/USD trading up 0.06% at 1.5220.
The dollar was down against the yen, with USD/JPY down 0.19% at 102.22, and down against the Swiss franc, with USD/CHF trading down 0.02% at 0.9669.
The yen has hit lows not seen since late 2008 this week after economic policymakers from the Group of Seven industrialized economies refrained from criticizing Japan over policies that have resulted in a weaker yen.
The Bank of Japan has rolled out massive stimulus polices in recent months to steer the country away from deflationary decline, which have weakened the yen.
Wealthy G7 nations concluded at a U.K. summit over the weekend that such policies are designed to spur growth in Japan and are not out to give the Asian economy unfair advantages in global trade arenas.
Japanese stocks traded higher in Asian trading on Wednesday on hopes the G7 green light may prompt the Bank of Japan to stimulate the economy further if needed.
The dollar was mixed against its cousins in Canada, Australia and New Zealand, with USD/CAD up 0.14% at 1.0194, AUD/USD up 0.03% at 0.9892 and NZD/USD trading up 0.07% at 0.8203.
In New Zealand, retail sales rose 0.5% in the first quarter, according to official data, missing expectations for a 0.8% increase.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.10% at 83.79.
Later Wednesday, the U.S. is to release data on producer price inflation, industrial production, the capacity utilization rate and a report on manufacturing activity in New York State.
Rising Japanese stock prices, the product of a weaker yen and Bank of Japan policies, also pushed up the dollar.
In Asian trading on Wednesday, EUR/USD was up 0.03% at 1.2944.
Data out of Europe released earlier both exceeded and missed market expectations, leaving investors favoring the safe-and-liquid dollar to ride out the uncertainty though in choppy trading.
The ZEW index of German economic sentiment rose to 36.4 in May from 36.3 in April, well below expectations for a reading of 38.3, which bolstered the dollar's appeal.
The index of current conditions fell to 8.9 from 9.2 in April, which markets interpreted as a sign that the German economy could face headwinds in its quest to rebound from a 0.5% contraction in the fourth quarter.
Inflation in Germany, meanwhile, did not surprise.
The country's consumer price index contracted 0.5 % in April from March and rose 1.2% from April of last year, both figures in line with expectations.
Elsewhere, Eurostat, the European Union's statistics office, reported that industrial production in the euro area rose by 1% in March from February, more than double expectations for a 0.4% increase.
Meanwhile in the U.S., the National Federation of Independent Business reported earlier that its small-business optimism index rose to 92.1 in April from 89.5 in March.
Analysts were expecting a reading of 89.8, and the numbers fanned sentiments the Federal Reserve may be closer to scaling back stimulus tools that weaken the dollar to spur recovery.
Also in the U.S., import prices dropped 0.5% in March, meeting market expectations, while export prices declined 0.7%, according to the Bureau of Labor Statistics.
The greenback, meanwhile, was down against the pound, with GBP/USD trading up 0.06% at 1.5220.
The dollar was down against the yen, with USD/JPY down 0.19% at 102.22, and down against the Swiss franc, with USD/CHF trading down 0.02% at 0.9669.
The yen has hit lows not seen since late 2008 this week after economic policymakers from the Group of Seven industrialized economies refrained from criticizing Japan over policies that have resulted in a weaker yen.
The Bank of Japan has rolled out massive stimulus polices in recent months to steer the country away from deflationary decline, which have weakened the yen.
Wealthy G7 nations concluded at a U.K. summit over the weekend that such policies are designed to spur growth in Japan and are not out to give the Asian economy unfair advantages in global trade arenas.
Japanese stocks traded higher in Asian trading on Wednesday on hopes the G7 green light may prompt the Bank of Japan to stimulate the economy further if needed.
The dollar was mixed against its cousins in Canada, Australia and New Zealand, with USD/CAD up 0.14% at 1.0194, AUD/USD up 0.03% at 0.9892 and NZD/USD trading up 0.07% at 0.8203.
In New Zealand, retail sales rose 0.5% in the first quarter, according to official data, missing expectations for a 0.8% increase.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.10% at 83.79.
Later Wednesday, the U.S. is to release data on producer price inflation, industrial production, the capacity utilization rate and a report on manufacturing activity in New York State.