Investing.com - The dollar fell to session lows against the yen on Tuesday and the euro slipped after data showed that U.S. consumer confidence deteriorated in February, while a sharp decline in China’s yuan also supported safe haven demand.
Dollar slides vs. yen after U.S. data, euro slips
USD/JPY hit 102.01, the lowest since February 20 and was last down 0.30% to 102.19.
The dollar extended losses after the Conference Board reported that its consumer confidence index declined to 78.1 in February, down from 79.4 in January, amid concerns over the short-term outlook for business conditions, jobs, and earnings.
Analysts had expected the index to tick up to 80.0.
The present situation index rose to its highest level in almost six years, but the expectations index declined, indicating that while consumers believe the economy has improved they do not foresee further considerable improvement in the coming months.
Earlier Tuesday, Standard & Poor’s with Case-Shiller reported that its house price index rose 13.4% in December from a year earlier, the best December reading in eight years and slightly ahead of forecasts for a 13.3% gain.
On a month-over-month basis, house prices rose 0.8%, down slightly from 0.9% growth in November, indicating that the recovery in the housing sector may be slowing.
Demand for the safe haven yen continued to be underpinned as China’s yuan posted the largest one-day decline in three years on Tuesday, amid speculation that the country’s central bank had intervened to add volatility to the currency ahead of possible economic reforms.
EUR/USD dipped 0.04% to 1.3729, backing off session highs of 1.3766.
The European Commission revised up its 2014 growth forecast for the euro zone to 1.2%on Tuesday, up from 1.1% in November.
However, the EC also cut its inflation forecast for this year to 1% from 1.5% in November and warned that debt levels in several countries will continue to climb.
Elsewhere, GBP/USD was up just 0.05% to 1.6699, while USD/CHF edged down 0.08% to 0.8881.
Sterling rose to session highs of 1.6723 earlier after data from the British Bankers Association showed that mortgage approvals rose 57% in January from a year earlier, hitting a 76-month high.
A separate report by the Confederation of British Industry said U.K. retail sales rose at the fastest rate since June 2013 in February.
Elsewhere, the Australian dollar was lower, with AUD/USD down 0.10% to trade at 0.9023, while NZD/USD inched down 0.01% to 0.8330.
The U.S. dollar pushed higher against the Canadian dollar, with USD/CAD rising 0.15% to 1.1078.
The U.S. dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, inched down 0.06% to 80.20.
Dollar slides vs. yen after U.S. data, euro slipsThe dollar extended losses after the Conference Board reported that its consumer confidence index declined to 78.1 in February, down from 79.4 in January, amid concerns over the short-term outlook for business conditions, jobs, and earnings.
Analysts had expected the index to tick up to 80.0.
The present situation index rose to its highest level in almost six years, but the expectations index declined, indicating that while consumers believe the economy has improved they do not foresee further considerable improvement in the coming months.
Earlier Tuesday, Standard & Poor’s with Case-Shiller reported that its house price index rose 13.4% in December from a year earlier, the best December reading in eight years and slightly ahead of forecasts for a 13.3% gain.
On a month-over-month basis, house prices rose 0.8%, down slightly from 0.9% growth in November, indicating that the recovery in the housing sector may be slowing.
Demand for the safe haven yen continued to be underpinned as China’s yuan posted the largest one-day decline in three years on Tuesday, amid speculation that the country’s central bank had intervened to add volatility to the currency ahead of possible economic reforms.
EUR/USD dipped 0.04% to 1.3729, backing off session highs of 1.3766.
The European Commission revised up its 2014 growth forecast for the euro zone to 1.2%on Tuesday, up from 1.1% in November.
However, the EC also cut its inflation forecast for this year to 1% from 1.5% in November and warned that debt levels in several countries will continue to climb.
Elsewhere, GBP/USD was up just 0.05% to 1.6699, while USD/CHF edged down 0.08% to 0.8881.
Sterling rose to session highs of 1.6723 earlier after data from the British Bankers Association showed that mortgage approvals rose 57% in January from a year earlier, hitting a 76-month high.
A separate report by the Confederation of British Industry said U.K. retail sales rose at the fastest rate since June 2013 in February.
Elsewhere, the Australian dollar was lower, with AUD/USD down 0.10% to trade at 0.9023, while NZD/USD inched down 0.01% to 0.8330.
The U.S. dollar pushed higher against the Canadian dollar, with USD/CAD rising 0.15% to 1.1078.
The U.S. dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, inched down 0.06% to 80.20.
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