Dollar index trims losses after upbeat U.S. data

© Reuters. Dollar eases off session lows, hovers at multi-month peak

Investing.com – The dollar trimmed losses and continued to trade within close distance of a 14-year high against the other majors currencies on Tuesday, after upbeat U.S. data boosted optimism over the U.S. economy and added to expectations for a rate hike by the Federal Reserve.

The U.S. Commerce Department said rose 0.8% in October, compared to expectations for a 0.6% increase.

, which exclude automobile sales, increased by 0.8% last month, compared to forecasts for an advance of 0.5%.

In addition, the Federal Reserve of New York said its climbed to 1.50 in November from -6.80 the previous month. Analysts had expected to improve to -2.50 this month.

The dollar also remained broadly supported amid hopes that increased fiscal spending and tax cuts under a Trump administration will bolster economic growth and inflation.

was up 0.11% at 1.0749, after rising to highs of 1.0840 hit earlier in the day and not far from Monday’s 10-month trough of 1.0706.

Earlier Tuesday, preliminary data showed that rose .2% in the third quarter, disappointing expectations for an incease of 0.3% and down from a growth rate of 0.4% in the previous quarter.

A separate report showed that the rose to 13.8 this month from October’s reading of 6.2. Analysts had expected the index to increase to 8.1 in October.

Elsewhere, dropped 0.58% to 1.2423 after the U.K. Office for National Statistics reported that the rose 0.1% in October, compared to expectations for a 0.3% gain.

Year-on-year, rorse 0.9% last month, below forecasts for a gain of 1.1%.

was little changed at 108.45, just off the previous session’s five-month high of 108.55, while rose 0.27% to 1.0004.

The Australian and New Zealand dollars moved lower, with down 0.11% at 0.7547 and with shedding 0.20% to 0.7103.

Also Tuesday, mentioned that underlying inflation is expected to return to normal levels over time and that the Australian economy is seen growing close to potential over the next few quarters, before picking up further.

Meanwhile, fell 0.24% to trade at 1.3530, not far from Monday’s nine-month peak of 1.3589.

The , which measures the greenback’s strength against a trade-weighted basket of six major currencies, was steady at 100.09, off session lows of 99.48 and just off Monday’s 11-month peak.

On Monday, the index hit highs of 100.24, a level not seen since December 2015 and if it rises above the highs of 100.51 set in December 2015, it would reach its highest level since April 2003.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Dollar index trims losses after upbeat U.S. data