RTTNews - The greenback saw some strength against other major currencies as global stocks fell, reducing the desire for higher-yielding currencies. With the rise, the buck moved off of a multi-week low against the euro and multi-month low against the pound.
Investors mulled a slew of economic reports from the U.S, including reports on consumer confidence, manufacturing and housing. Wednesday and Thursday will also be busy - highlighted by the monthly jobs report on Thursday - before U.S. traders take Friday off for Independence Day.
The dollar turned to the upside against the euro after reaching a 25-day low earlier in the day. After reaching as low as 1.4151 in overnight trading, the buck rebounded to challenge 1.4000 in the mid-day.
The Eurozone consumer price index or CPI dropped 0.1% year-on-year in June after remaining flat in May. However, the decline was slightly less than the expected fall of 0.2%. The final report for June is due on July 15.
Data released by the Federal Labor Agency showed that the number of unemployed people in Germany rose a seasonally adjusted 31,000 to 3.5 million. Economists had forecast an increase of 45,000. The adjusted jobless rate inched up to 8.3% in June from 8.2% in May.
The greenback bounced back against the sterling after hitting an eight-month low of 1.6744 in the early-morning. The buck rebounded to 1.6459 in the early afternoon.
Tuesday, Bank of England's Deputy Governor Paul Tucker said a radical simplification of banks' group structures are needed and also highlighted the need for better information from banks. He said it is important to bring about the kind of regime shift to restore confidence and thrust in the industry without a government prop.
The dollar also rose against the yen, reading the high end of a recent trading range. Overall, the pair has been range-bound for about 10 days.
On the economic front in the U.S., the Conference Board said its consumer confidence index fell to 49.3 in June from a revised 54.8 in May. The decrease surprised economists, who had expected the index to edge up to 55.3 from the 54.9 originally reported for the previous month.
The ISM - Chicago said its index of activity in the manufacturing sector jumped to 39.9 in June from 34.9 in May, although a reading below 50 indicates a continued contraction. Economists had been expecting the index to increase to a reading of 39.0.
Earlier, the S&P Case-Shiller Index, a closely watched measure of home prices, showed a 0.6 percent decline from March to April, according to a survey of prices in 20 U.S. cities. This represented a drop of 18.1 percent compared to the same period last year.
For comments and feedback: contact firstname.lastname@example.org