The U.S. dollar remained mixed against its major counterparts on the final trading day of the year on Tuesday, after data showed that U.S. consumer confidence rose more-than-expected in December to hit a three-month high.
Trading volumes are expected to remain light as many investors already closed books before the end of the year, reducing liquidity in the market and increasing volatility, which helped exaggerate market moves.
During U.S. morning trade, EUR/USD dipped 0.13% to 1.3782. The Conference Board said earlier that its index of U.S. consumer confidence improved to 78.1 in December from 72.0 in November. Analysts had expected the index to rise to 76.0 this month.
The data came after market research group Kingsbury International said its Chicago purchasing managers’ index fell to a seasonally adjusted 59.1 this month from a reading of 63.0 in November. Analysts had expected the index to decline to 61.0 in December.
Also Tuesday, Standard & Poor’s with Case-Shiller said that its house price index rose at an annualized rate of 13.6% in October from a year earlier, the strongest pace since February 2006 and above forecasts for an increase of 13%.
Meanwhile, the greenback was lower against the pound on speculation the Bank of England will raise interest rates sooner than previously anticipated. GBP/USD advanced 0.28% to 1.6543.
Elsewhere, the dollar was lower against the yen, with USD/JPY down 0.18% to 104.95, but up against the Swiss franc, with USD/CHF adding 0.29% to 0.8903.
The greenback posted modest losses against the commodity-linked currencies. The Australian, New Zealand and Canadian dollars were all higher, with AUD/USD rising 0.44% to 0.8945, NZD/USD gaining 0.44% to 0.8241 and USD/CAD shedding 0.25% to 1.0621.
The U.S. dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was flat at 80.16.
Jerusalem Post Annual Conference. Buy it now, Special offer. Come meet Israel's top leaders