U.S. Dollar Rises After Weak German Data
The greenback rose on Tuesday, while the euro was lower as data showed that Germany’s economy slowed in 2018 and investors were waiting for the results on the parliamentary vote on the UK’s withdrawal from the European Union.
Growth in the German economy slowed to 1.5% in 2018, the slowest rate of growth in five years. The data added worry over slowing global growth due to trade war disputes with the U.S.
EUR/USD slipped 0.67% to 1.1397 as of 11:26 AM ET (16:26 GMT).
The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, jumped 0.56% to 95.73, while USD/JPY rose 0.37% to 108.56.
The dollar was also boosted after news that China would inplement more stimulus measures in response to an unexpected fall in the country's exports in December. The measures should help ease investor worries over slowing global growth.
Still, the dollar has fallen in recent weeks, as investors expect the Federal Reserve to pause its rate of monetary tightening this year.
Sterling was lower, as UK Prime Minister Theresa May’s Brexit deal is largely expected to lose a parliamentary vote later in the day. The prospect of a no-deal Brexit is increasing, as the UK is expected to leave the bloc on March 29. GBP/USD fell 0.78% to 1.2763.
The risk sensitive Australian and New Zealand dollars were flat, with AUD/USD falling 0.03% to 0.7191 and NZD/USD down 0.04% to 0.6815.