Euro down on data

Euro down on data

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The euro saw declines on Tuesday after German investor confidence was reported lower in June. The shared currency was down 0.2 percent to SFr1.6630 versus the Swiss franc by midday in New York, while it fell 0.3 percent against both the yen and sterling to ¥165.40 and £0.6743 respectively.

The ZEW economic expectations index was down to 20.3 in June, lower than its reading of 24 in May and much below the 29 level it had been expected to reach this month. Still, most analysts expect that the European Central Bank will hike interest rates again, probably in September.

The US dollar was also weaker on the session after new data showed that housing starts were down in May. The greenback was steady versus the euro at $1.3410, but it dropped 0.2 percent to sterling, to $1.9880.

Investors were still selling the yen to finance carry trades, and the governor of the Bank of Japan said that the bank is watching those transactions closely. Still, the Japanese currency managed to add 0.2 percent to ¥123.40 in relation to the US dollar.

The Canadian dollar added 0.6 percent to C$1.0650 versus the greenback after consumer price inflation figures didn’t show enough of a slowdown to convince analysts that the Bank of Canada would hold interest rates steady in July.

The New Zealand dollar advanced 0.2 percent against the yen to ¥93.40 and it gained 0.4 percent to $0.7570 against the US dollar a day after the Reserve Bank of New Zealand again intervened to slow the kiwi’s gains down.