Forexpros – The U.S. dollar fell against its major counterparts on Tuesday as increased risk appetite attracted investors to the beaten down euro due to bullish euro zone data.
During mid session U.S. trade, the greenback was down against the euro, with EUR/USD climbing 0.59% to 1.3076.
The single currency was lifted by bullish euro zone data including rising German business confidence, a strong Spanish note auction and an agreement to fund the International Monetary Funds crisis package.
The greenback was also down against the pound, with GBP/USD advancing 1.66% to hit 1.5660.
Spain’s note auction pointed toward lower borrowing costs lifting optimism for a rebound in the region.
Meanwhile, bullish U.S. data lifted demand for riskier assets as U.S. building permits climbed to the highest level since March and U.S. housing starts soared to a 19 month high.
The greenback was lower against the yen and the Swiss franc with USD/JPY down by 0.26% and USD/CHF dropping 0.61% to hit 0.9316.
In addition the greenback was lower against its Canadian, Australian and New Zealand counterparts with USD/CAD falling 0.80% to hit 1.0305, AUD/USD soaring 1.72% to hit 1.0068 and NZD/USD jumping 1.73% to 0.7687.
Statistics Canada stated that consumer price inflation climbed 0.01% below the projections for a 0.3% gain and the core inflation rate climbed 2.1% in November on the year.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, dropped 0.85% to hit 80.26.
Market sentiment remains uncertain with pending S&P 500 euro zone downgrades on the calendar.
Forexpros
