The euro led the incline in FX market on Tuesday trading, after the release of better than estimated German manufacturing report.
German manufacturing stalled at 52.0 in August, however, better than forecasts of 50.6. In the euro area, manufacturing and services lingered in August causing PMI composite to remain unchanged at 51.5, and better than estimations of 50.0.
The euro rose against majors after the report, yet the currency may remain under pressure as the report declared that European manufacturing and services lingered at the slowest pace in almost two years adding to signs growth pace is easing.
A separate report showed that German investor confidence dropped on debt concerns.
In other European economies, Swiss data showed a widening trade surplus to 2.83 billion francs in July compared with the prior surplus of 1.74 billion francs, yet the franc retreated against the euro as the better than estimated manufacturing reports eliminated demand on safe havens.
Concerning the EUR/CHF , the pair advanced on daily basis to trade around 1.1408, after recording a high of 1.1428 a low of 1.1312.
Moreover, the Japanese yen declined against majors despite talks from the Japanese Finance Minister that the BoJ may intervene strongly to curb the yen's appreciation after the advancement to all-time record against the dollar.
Moreover, the dollar retreated against a basket of major currencies to a low of 73.60 compared with the day's opening at 74.15, according to the dollar index.
Concerning the USD/JPY, the pair fell on daily basis to trade around 76.50, after recording a high of 76.93 and a low of 76.48.
The trading range for today is among key support at 75.80 and key resistance now at 78.45.
Moving to the British pound, the pair rebounded after three sessions of decline to hover around 1.6525.
Amid the absence of fundamentals from the U.K. and before the release of U.S. data, the pair has followed the general sentiment in the market.
So far, the pair has recorded a high of 1.6571 and a low of 1.6445, whereas the trading range for today is among key support at 1.6225 and key resistance at 1.6715.