Euro broadly lower as Spanish deficit concerns weigh

Investing.com - The euro was broadly lower against its major counterparts on Tuesday, as worries over Spain’s deficit reduction plans overshadowed better-than-expected data on German economic sentiment and relief over a second bailout for Greece.
 
During European late morning trade, the euro was lower against the U.S. dollar, with EUR/USD shedding 0.27% to hit 1.3120.
 
The ZEW Centre for Economic Research said that its index of German economic sentiment advanced to the highest level since June 2010 this month, climbing to 22.3 compared to last month’s reading of 5.4.
 
Analysts had expected a reading of 10.5 in March.
 
The data came after a meeting of euro zone finance ministers in Brussels gave their approval to "adjusted measures for Greece" earlier, formally rubber stamping a EUR130 billion bailout package.
 
But the euro remained under pressure as Spain faced calls from European leaders to make deeper budget cuts, after the country’s prime minister raised the deficit target earlier this month.
 
The single currency was higher against the yen, with EUR/JPY rising 0.27% to hit 108.45.
 
Earlier in the day, the Bank of Japan kept interest rates unchanged in a range of zero to 0.1%, in a widely expected decision. The central bank left the size of its asset purchase fund unchanged at JPY30 trillion, after unexpectedly boosting the program in February, weakening the yen.
 
The euro was down against the pound, with EUR/GBP shedding 0.43% to hit 0.8373
 
Sterling found support after official data showed that total U.K. exports to non-EU countries rose to a record high in January, adding to hopes that the economy is recovering.
 
The Office for National Statistics said the goods trade deficit expanded to GBP7.53 billion in January, slightly less than forecasts for GBP7.88 billion and up from GBP7.18 billion the previous month, which had been the lowest since December 2009.
 
Elsewhere, the euro was fractionally higher against the Swiss franc, with EUR/CHF inching up 0.02% to hit 1.2059.
 
In Switzerland, official data showed that producer price inflation rose more-than-expected in February, climbing 0.8%, above expectations for a 0.3% gain.
 
The shared currency was weaker against the Australian, New Zealand and Canadian dollars, with EUR/AUD dropping 0.46% to hit 1.2449, EUR/NZD tumbling 0.85% to hit 1.5944 and EUR/CAD falling 0.54% to hit 1.2984.
 
Sentiment on the Australian dollar was dented earlier, after official data showed that home loan approvals fell more-than-expected in January, while a separate report showed that Australian business confidence fell to the lowest level in four months in January.
 
The New Zealand dollar found support after official data showed that food price inflation rose more-than-expected in February, while house sales rose sharply.
 
Later in the day, the U.S. was to release government data on retail sales and business inventories, while the Federal Reserve was to announce its benchmark interest rate; the announcement was to be accompanied by the central bank’s rate statement.
 
Euro zone finance ministers were set to continue talks in Brussels throughout the day.