RTTNews - The euro has turned to the downside on Tuesday as weaker global stocks has reduced the appeal for riskier currency investments. The drop took the European currency away from multi-week highs against the lower-yielding dollar and yen.
Tuesday is a light day on the economic calendar in the Eurozone. Things pick up on Wednesday with German consumer price index data and French producer price index data on the agenda.
The euro turned to the downside against the dollar, reaching a five-day low of 1.4130. Earlier in the morning, the euro reached an eight-week high of 1.4303, coming within a few ticks of an eight-month high.
The euro fell to a six-day low of 132.89 versus the Japanese yen. The European currency had been challenging a four-week high near 136.00 earlier in the morning.
In the U.S., the Conference Board reported its consumer confidence index came in at 46.6 for July. A reading of 48.7 was forecast, compared to a 49.3 from the month of June. Meanwhile, the S&P/Case-Shiller 20-City Composite Home Price Index fell an annual 17.1% in May compared to the 18.1% decrease reported for April. Economists had expected a drop of 17.9%.
The euro touched a four-day low of 0.8604 against the British pound before recovering most of the day's mild losses. For the most part, the pair has been range-bound for 10 days.
U.K. Business Secretary Lord Mandelson announced a GBP 151.5 million package to help manufacturers seize the opportunities provided by emerging technologies.
In economic news from the Eurozone, Italy's consumer confidence in July rose to the highest level since November 2007, results of the latest consumer confidence survey conducted by an economic think thank showed today. The consumer confidence indicator rose to 107.5 in July from 105.4 in June, ISAE said, above the expected reading of 105.8.
Global and export demands for French manufactured products continued to fall in the second quarter, but the decline was less pronounced than during the two previous quarters, results of the latest quarterly business survey revealed today. The indicator measuring total demand in the second quarter rose to minus 43 from minus 58 in the first quarter. A negative reading indicates a fall in demand.
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