The main currency pair took a breather in its recent upsurge and consolidated in the upper band of 1.13 handle almost through Asia, before facing fresh offers in early Europe as the US dollar appear to jumped back on the bids against its six major peers.
Overnight, the dollar remained broadly lower against the other major currencies on Tuesday, as the release of disappointing U.S. housing sector data continued to weigh on demand for the greenback.
Elsewhere, the euro received a boost from stronger than expected economic data as the Eurozone ZEW index of economic sentiment rose to a three-month high of 21.5 in April, up considerably from March’s reading of 10.6. It was also sharply higher than consensus estimates of a monthly reading of 14.0. Within the report, inflation rose slightly above 50, providing signals that economic activity has improved enough in the euro area to avoid deflation.
The major failed to benefit from the persisting risk-off trades in the market amid fresh sell-off in oil prices, which capped the upside in the Asian equities. Markets moved past upbeat ZEW economic sentiment data, as focus now turns towards ECB Chief Draghi’ speech scheduled later this session ahead of the US existing home sales data lined up for release in the NY session.