© Reuters. The dollar erased its gains, the euro rose
Investing.com – The dollar has erased its gains on Tuesday, as yields in u.s. bond turned back to the recent highs and the euro has strengthened, buoyed by data showing that the euro zone economy had its best year in ten years in 2017.
The index dollar, which measures the greenback’s strength against a basket of currencies, gave up 0.34% to 89.87 at 08:40 AM ET (13:40 GMT).
The dollar dropped last week after the us Treasury secretary, Steven Mnuchin, had given his assent implied in a weak currency. Trump has later tried to contradict these comments, saying that he wanted to finally that the dollar is strong.
There was also a focus on the Fed, which was expected to begin its policy meeting two days later on Tuesday.
Market participants expect the speech of Trump on the state of the Union next Tuesday, for all that he could say more on the dollar. The president also had to expose his infrastructure plan is very expected in the speech.
The euro is gaining ground, with the EUR / USD up 0.32% at 1.2432, from a high of more than three years of 1.2537 reached last week.
The Eurostat data on Tuesday confirmed that the recovery in the euro area remains on track, with a growth of 2.7% over the last year, the highest in a decade.
The euro zone economy grew 0.6% in the fourth quarter of 2017.
Against the yen, the dollar falling, with the USD / JPY down 0.24% for trading on 108,69, falling to a low of four and a half months of 108,27 reported Friday.
The british pound bounces back from a low day, with the GBP / USD up 0.43% to 1,4135 while the recovery of the dollar and fears of renewed weighed on the Brexit, the draft law for the withdrawal of the british Prime minister Theresa May is criticised.