Dollar trims gains but remains broadly supported
Investing.com
Published Apr 21, 2015 08:32AM ET
Dollar pares gains vs. rivals but remains broadly higher
Investing.com - The dollar trimmed gains against a basket of other major currencies on Tuesday, but remained supported as the greenback continued to recover from the previous week's disappointing U.S. data.
The dollar regained some strength after a recent string of soft economic data dampened optimism on the U.S. recovery, adding to uncertainty over the timing of a rate hike.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.11% to 98.27, down from highs of 98.69 hit earlier in the day.
EUR/USD was down 0.25% at 1.0713, off session lows of 1.0661.
The euro remained under pressure after the ZEW Centre for Economic Research said that its index of German economic sentiment declined by 1.5 points to 53.3 this month from March’s reading of 54.8. Analysts had expected the index to improve by 0.5 points to 55.3 in April.
However, the index of euro zone economic sentiment increased to a 14-month high of 64.8 in April from 62.4 in March, above forecasts for a gain to 63.7.
Sentiment on the single currency also remained fragile amid concerns that Athens is no closer to reaching an agreement on economic reforms for bailout funds with its creditors, fuelling fears that Greece could be forced out of the euro zone.
The pound was steady, with GBP/USD at 1.4903, after falling to 1.4856 earlier in the session.
Elsewhere, the dollar was higher against the yen and the Swiss franc, with USD/JPY up 0.14% to 119.35 and with USD/CHF adding 0.13% to 0.9575.
The Australian and New Zealand dollars were higher, with AUD/USD rising 0.30% to 0.7747 and NZD/USD gaining 0.63% to 0.7710.
The Reserve Bank of Australia earlier said in the minutes of its April meeting that "it was appropriate to hold interest rates steady for the time being" but added that "further easing of policy may be appropriate over the period ahead" to bolster growth.
Meanwhile, USD/CAD was almost unchanged at 1.2220.
Get The News You Want
Written By: Investing.com
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.