The dollar got off to a weak start against its major rivals Tuesday, but has since staged a recovery and turned higher. Early strength was sparked by an improvement in sentiment following a recovery of Turkish lira after the country’s central bank introduced measures to boost liquidity in the market.
With a jump in prices for fuel imports offset by a drop in prices for non-fuel imports, the Labor Department released a report on Tuesday showing import prices in the U.S. came in unchanged in the month of July.
The Labor Department said import prices were unchanged in July after edging down by a revised 0.1 percent in June.
Economists had expected import prices to inch up by 0.1 percent compared to the 0.4 percent decrease originally reported for the previous month.
Meanwhile, the report said export prices fell by 0.5 percent in July after rising by a downwardly revised 0.2 percent in June.
Export prices had been expected to rise by 0.2 percent compared to the 0.3 percent increase originally reported for the previous month.
The dollar has climbed to a 13-month high of $1.1335 against the Euro Tuesday afternoon, from an early low of $1.1429.
The euro area economy expanded more than initially estimated in the second quarter, flash estimate published by Eurostat showed Tuesday. Gross domestic product climbed 0.4 percent sequentially, the same pace of increase as seen in the first quarter, but revised up from the initial estimate of 0.3 percent.
Germany’s economic confidence improved more than expected in August, survey data from the Centre for European Economic Research showed Tuesday. The ZEW Indicator of Economic Sentiment climbed notably to -13.7 in August from -24.7 in July, the Mannheim-based think tank said.
The expected score was -21.3. Nonetheless, the indicator remained significantly below its long-term average of +23.0.
Germany’s economic growth exceeded expectations in the second quarter on domestic demand and optimism among financial market experts strengthened notably despite escalating trade tensions between the U.S. and China.
The largest euro area economy grew 0.5 percent sequentially, following the 0.4 percent increase in the first quarter, Destatis reported Tuesday. The growth rate was expected to remain unchanged at 0.4 percent.
Germany’s consumer price inflation slowed as initially estimated in July, latest figures from Destatis showed Tuesday. Inflation moderated to a 3-month low of 2.0 percent in July from 2.1 percent in June. That was in line with the flash data published on July 30.
France’s consumer price inflation accelerated in July as expected initially, latest data from INSEE showed Tuesday. Consumer prices rose 2.3 percent year-on-year after a 2 percent increase in June. Higher energy prices led the acceleration.
France’s unemployment rate dropped marginally in the second quarter, data published by the statistical office Insee showed Tuesday. The unemployment rate in metropolitan France dropped to 8.7 percent from 8.9 percent in the first quarter.
The buck has risen to a 14-month high of $1.2715 against the pound sterling Tuesday, from an early low of $1.2826.
The UK unemployment rate dropped to a new low in the second quarter, the Office for National Statistics reported Tuesday.
The ILO jobless rate came in at 4 percent in the second quarter, the lowest since February 1975. The rate was expected to remain unchanged at 4.2 percent.
The greenback dipped to an early low of Y110.587 against the Japanese Yen Tuesday, but has since rebounded to around Y111.225.
Japan’s industrial production decreased less than initially estimated in June, preliminary figures from the Ministry of Economy, Trade and Industry showed Tuesday. Industrial production dropped a seasonally-adjusted 1.8 percent month-over-month in June, faster than the 0.2 percent fall in the previous month. That was slower than the 2.1 percent decline in the flash data.