Investing.com - The dollar was steady to lower against the other
major currencies on Tuesday, after mixed economic reports from the
euro zone, while caution ahead of the European Central Bank's
policy meeting continued to support safe-haven demand.
The dollar was steady changed against the euro, with EUR/USD up
0.05% to 1.3603.
Eurostat said consumer price inflation in the euro zone
increased by 0.5% last month, down from 0.7% in April and missing
expectations for a reading of 0.7%. The rate stands well below the
ECB's target of near but just under 2%.
A separate report showed that the unemployment rate in the
single currency bloc ticked down to 11.7% in April, from 11.8% the
previous month, confounding expectations for the rate to remain
Earlier Tuesday, official data showed that the number of
unemployed people in Spain dropped by 111,900 last month, compared
to expectations for a 112,300 decline, after a 111,600 fall in
But sentiment on the single currency remained vulnerable after
data on Friday showing that the annual rate of inflation in Italy
and Spain slowed in May added to expectations that the ECB will
take steps to tackle low consumer price growth.
The pound edged higher against the dollar, with GBP/USD adding
0.13% to 1.6768.
Sterling's gains were capped however after Markit research group
said the U.K. construction PMI ticked down to 60.0 in May, from a
reading of 60.8 the previous month. Analysts had expected the index
to remain unchanged last month.
The dollar was steady against the yen and the Swiss franc, with
USD/JPY inching 0.03% higher to 102.42 and with USD/CHF dipping
0.04% to 0.8984.
The greenback was steady to lower against the Australian, New
Zealand and Canadian dollars, with AUD/USD gaining 0.31% to 0.9276,
NZD/USD edging 0.11% higher to 0.8465 and USD/CAD easing up 0.05%
Earlier in the day, official data showed that retail sales in
Australia rose 0.2% in April, disappointing expectations for a 0.3%
gain, after a 0.1% uptick the previous month.
Separately, the Bank of Australia left its benchmark interest
rate at 2.5% in a widely expected move and said that "on present
indications, the most prudent course is likely to be a period of
stability in interest rates."
The export-related currencies also found some support after data
released earlier showed that China's final HSBC Purchasing Managers
Index came in at 49.4, down from a preliminary reading of 49.7, but
higher then April's reading of 48.1.
A separate report showed that activity in the country's services
sector rose to a six-month high in May.
The US Dollar Index, which tracks the performance of the
greenback versus a basket of six other major currencies, was down
0.05% to 80.65.
Later in the day, the U.S. was to produce data on factory
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