The U.S. dollar rose against the EUR and a basket of currencies despite a rally in U.S. stocks. The Dollar moved as optimism about an economic recovery has prompted investors to scoop up higher-yielding assets. The USD gained for the 2nd day against the EUR as evidence economies have yet to shake off the worst effects of the global recession spurred demand for the safety of the U.S. currency.
The greenback also rose against the Yen on Tuesday in a corrective move following steep gains the previous day as Japan's finance minister backtracked over its tolerance of a stronger yen. Still, the U.S. currency may resume falling soon because the overall long-term weak-dollar trend is prevailing in the market. The USD will likely to remain weak unless something positive to the U.S. economy will make investors speculate that U.S. Interest Rates will raise soon. During the rest of the day, investors will be keeping an eye for a raft of economic data from the United States and Europe. In the U.S., there is the CB Consumer Confidence report and a House Price update for July. In Europe, Euro-Zone economic confidence reports and the final estimate of second-quarter UK Gross Domestic Product (GDP) are due.