Forexpros – The U.S. dollar was mixed to modestly lower against its major counterparts on Tuesday, after an unexpected improvement in German economic sentiment and a well-received Spanish bond auction.
During European afternoon trade, the dollar was lower against the euro, with EUR/USD rising 0.11% to hit 1.3203.
The ZEW Centre for Economic Research said that its index of German economic sentiment rose for the first time in ten months in December, edging up to minus 53.8 from last month’s three-year low of minus 55.2.
Analysts had expected the index to decline to minus 55.8 in December.
Meanwhile, Spain’s treasury exceeded its target, selling EUR4.94 billion in 12-month and 18-month bonds at lower yields than at a similar auction last month.
Following the auction, yields on short-dated Spanish government bonds eased, with the yield on two-year bonds declining to 4.25%.
But the yield on Italian 10-year government bonds remained above the critical 7% threshold, amid concerns over the risk of sovereign rating downgrades across the euro zone.
The greenback also slipped against the pound, with GBP/USD gaining 0.11% to hit 1.5699.
In the U.K., official data showed that consumer price inflation declined in line with expectations in November, easing to 4.8% year-on-year, supporting the Bank of England’s view that inflation will moderate.
Elsewhere, the greenback was lower against the yen and the Swiss franc, with USD/JPY declining 0.11% to hit 77.85, and USD/CHF retreating 0.17% to hit 0.9355.
Earlier Tuesday, the Swiss State Secretariat for Economic Affairs lowered the GDP forecast to 0.5% in 2012 from a 0.9% growth forecast in September.
The report also forecast a 1.8% rise in the country’s GDP in the fourth quarter, from a 1.9% increase in the third quarter.
Meanwhile, Japan’s Finance Minister Jun Azumi said European leaders should do more to resolve the debt crisis, before asking for funds from the International Monetary Fund.
Elsewhere, the greenback was broadly lower against its Canadian, Australian and New Zealand counterparts, with USD/CAD sliding 0.16% to hit 1.0253, AUD/USD adding 0.60% to hit 1.0134 and NZD/USD climbing 0.40% to hit 0.7660.
The National Australia Bank said earlier that its index of business confidence remained unchanged in November, supported by mining as well as the retail and services sectors.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, fell 0.12% but remained close to a two-month high at 80.14.
Later in the day, the Federal Reserve was to announce its federal funds rate, while the U.S. was also to release official data on retail sales.
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