Investing.com - The dollar traded higher against most major
currencies on Tuesday on news Germany's central bank would support
a European Central Bank decision to implement fresh stimulus tools
should the European economy merit such action.
In U.S. trading on Tuesday, EUR/USD was down 0.43% at
The Wall Street Journal reported the Germany's central bank
would back monetary easing measures, including a negative rate on
bank deposits and purchases of packaged bank loans, if such tools
were needed to keep persistently low levels of inflation from
becoming entrenched in the euro zone.
Last week, ECB President Mario Draghi said monetary authorities
were "comfortable" with acting at its next meeting in June after
reviewing the latest economic projections, and the euro fell on
sentiments that European monetary policy is set to loosen, which
bolstered the dollar's safe-haven appeal.
The single currency also came under pressure after data showed
that German economic sentiment slumped to a 16-month low in
The ZEW Centre for Economic Research reported that its index of
German economic sentiment dropped to 33.1 this month from 43.2 in
April. Analysts had expected a reading of 41.0.
The current conditions index improved to 62.1 from 59.5 in
April, ahead of expectations of 60.5.
Meanwhile in the U.S., investors shrugged off soft retail sales
numbers, betting that data will disappoint from time to time but
longer-term trends point to a more sustained U.S. recovery.
The Commerce Department reported earlier that U.S. retail sales
rose just 0.1% in April, missing expectations for a 0.4% increase.
Retail sales for March were revised up to a 1.5% gain from a
previously reported increase of 1.2%.
Core retail sales, which exclude automobile sales, were flat in
April, disappointing forecasts for a 0.6% increase. Core sales in
March were revised up to a rise of 1% from a previously reported
increase of 0.7%
The dollar was up against the yen, with USD/JPY up 0.16% at
102.29 and up against the Swiss franc, with USD/CHF up 0.30% at
The greenback was up against the pound, with GBP/USD down 0.26%
The dollar was mixed against its cousins in Canada, Australia
and New Zealand, with USD/CAD up 0.12% at 1.0908, AUD/USD down
0.07% at 0.9355 and NZD/USD up 0.14% at 0.8632, as data released
earlier revealed that industrial production and retail sales in
China slowed in April.
TheUS Dollar Index, which tracks the performance of the
greenback versus a basket of six other major currencies, was up
0.32% at 80.21.
On Wednesday, the U.S. is to release data on producer price
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