Forex – dollar extends gains, euro slips

© Reuters. The dollar extends its gains, euro slips – The us dollar advanced further against a basket of currencies on Tuesday, which has driven down the euro, while data on GDP and political instability have weighed on the pound.

The dollar index, which measures the greenback’s strength against a basket of six major currencies, was up 0.25% to 94.04 at 09:28 AM (13:28 GMT).

The euro was lower against the dollar, with the EUR / USD down 0.27% to 1,1719 after falling to 1,1691 earlier.

In the euro zone, data on Tuesday showed that investors ‘ confidence has fallen to its lowest level in six years in July, fears of an escalation of trade tensions with the United States that has weighed on the economic outlook.

The ZEW index of sentiment of German investors fell to -24.7 this month against -16.1 in June, lowest since August 2012.

The dollar was also higher against the yen, with USD / JPY rising 0.33% to 111,19, the highest level since may 21.

The demand for the dollar continued to be supported by expectations of a faster pace of rate hikes by the federal Reserve this year.

The book progresses with the GBP / USD rising 0.11% to 1,3273.

The economic growth of the United Kingdom has advanced 0.3% in may compared to 0.2% in April, according to preliminary figures of the monthly GDP, published earlier on Tuesday.

The report painted a mixed picture of the economy, with modest growth boosted by the services sector, partially offsetting the decline in the construction sector and industrial production.

Some analysts believe that the data will allow the Bank of England to continue its interest rate hike in August, but others fear that the political instability does not encourage decision-makers to wait.

The british Prime minister Theresa May is facing a rebellion in his conservative party, after Boris Johnson has resigned from his post as british secretary for foreign Affairs on Monday, becoming the third minister to resign from the government in twenty-four hours.

Meanwhile, the pound gained ground against the euro, with EUR / GBP down 0.44% to 0,8823.

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