Investing.com – The U.S. dollar inched higher against its rivals on Tuesday, even as weaker-than-expected U.S. industrial production data added to expectations the Federal Reserves is likely to stay on pause for prolonged period.
The , which measures the greenback against a trade-weighted basket of six major currencies, rose by 0.12% to 96.67.
Industrial production — a measure of output at factories, mines and utilities — fell 0.2% in March from the prior month. That confounded economists’ expectations for a .
“The data have been volatile in recent months, led by swings in autos, but the net result has been weakening; manufacturing is especially export-oriented,” High Frequency Economics said in a note.
The data arrived as the Boston Fed’s Eric Rosengren talked up the prospect of keeping rates lower for longer, saying the central bank does not need to adjust monetary policy at the moment. Rosengren’s dovish remarks come a day after Chicago Fed President Charles Evans said rates can stay unchanged until the fall of 2020.
fell 0.32% to 1.3049 on Brexit uncertainty despite Labour leader Jeremy Corbyn denying a report that Brexit talks with Prime Minister Theresa May’s government had stalled.
fell 0.19% to $1.1286 as better-than-expected was offset by reports European Central Bank members are uncertain over whether the trading bloc will mount an economic recovery in the second half of the year.
fell 0.04% to C$1.3357 as oil prices bounced from session lows to support the loonie. The loonie, however, could be set to come under pressure amid expectations that the Bank of Canada may cut rates. The first quarter “was very weak,” said David Rosenberg, chief economist at Gluskin Sheff in Toronto. So weak, in fact, that Rosenberg believes the odds of a BOC rate cut should be much higher than they are now.
fell 0.04%% to Y111.99
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.