The euro pulled back from session lows against the dollar on Tuesday, as data showing that U.S. consumer confidence deteriorated this month tempered expectations for higher interest rates. The Conference Board, a market research group, said its index of consumer confidence fell to 90.9 this month from a downwardly revised 99.8 in June. Economists had forecast a reading of 100.0. EUR/USD was last at 1.1055, off 0.30% for the day, from lows of 1.1020 ahead of the report.
The pound edged higher against the U.S. dollar on Tuesday, after data showed that the U.K. economy grew in line with expectations in the second quarter, while sentiment on the greenback remained vulnerable ahead of the Federal Reserve's policy statement this week. The Office for National Statistics reported on Tuesday that U.K. gross domestic product expanded by 0.7% in the three months ending June 30, meeting forecasts. The U.K.’s economy grew by 0.4% in the preceding quarter. GBP/USD hit 1.5580 during European morning trade, the session high, and the pair subsequently consolidated at 1.5585, adding 0.15%.
The U.S. dollar rose against the yen on Tuesday, as the greenback regained some strength ahead of the Federal Reserve's policy statement due on Wednesday. USD/JPY hit 123.80 during European afternoon trade, the pair's highest since July 24. The pair subsequently consolidated at 123.70, gaining 0.45%.