Investing.com - The dollar pushed lower against the other major currencies on Tuesday, after data showed that the U.S. trade deficit narrowed less than expected in March and as market sentiment remained supported by a string of upbeat economic reports from the euro zone.
The dollar was lower changed against the euro, with EUR/USD gaining 0.48% to 1.3942.
Official data showed that the U.S. trade deficit narrowed to $40.38 billion in March, from $41.87 billion in February, whose figure was revised from a previously estimated deficit of $42.30 billion. Analysts had expected the trade deficit to narrow to $40.30 billion in March.
In the euro zone, data showed that retail sales rose 0.3% in March, confounding expectations for a 0.2% fall. Retail sales in February were revised down to a 0.1% gain from a previously estimated 0.4% increase.
The report came after official data showed that the number of unemployed people in Spain dropped by 111,600 in April, compared to expectationd for a decline of 49,100, after a 16,600 fall the previous month.
Separately, Markit research group said that Spain's services purchasing managers' index rose to a six-year high of 56.5 last month, from a reading of 54.0 in March. Analysts had expected the index to tick up to 54.4 in April.
Italy's services PMI swung back into expansion territory last month, rising to 51.1 from a reading of 49.5 in March, beating expectations for an uptick to 50.4.
The pound was higher against the dollar, with GBP/USD advancing 0.68% to 1.6983.
Sterling hit fresh five-year highs against the dollar after Markit said the U.K. services PMI rose to a four-month high of 58.7 last month, from a reading of 57.6 in March. Analysts had expected the index to remain unchanged in April.
The upbeat data added to expectations the Bank of England could raise borrowing costs ahead of other central banks.
The dollar was lower against the yen and the Swiss franc, with USD/JPY sliding 0.56% to 101.57 and with USD/CHF retreating 0.59% to 0.8725.
The greenback was lower against the Australian, New Zealand and Canadian dollars, with AUD/USD up 0.78% to 0.9345, NZD/USD rallying 1.09% to 0.8773 and USD/CAD shedding 0.36% to 1.0916.
In Canada, official data showed that the trade surplus narrowed to C$0.08 billion in March, from C$0.85 billion in February, whose figure was revised up from a previously estimated surplus of C$0.29 billion. Analysts had expected the trade surplus to narrow to C$0.40 billion in March.
Earlier Tuesday, the Reserve Bank of Australia held the cash rate at a record low 2.5%, in a widely expected move.
In addition, Australia's March trade balance reported a surplus of A$713 million, compared to an expected surplus of A$1.2 billion.
The US Dollar Index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.55% to 79.10.