EUR/USD
The euro slid to session lows against the dollar on Tuesday after data showing an uptick in U.S. underlying inflation and a strong increase in new home sales bolstered the outlook for higher U.S. interest rates. The euro strengthened against the dollar earlier in the day, rising above the 1.10 level after data showing the economic recovery in the euro area gained traction last month, with private sector activity expanding at a faster-than-expected rate.
GBP/USD
The pound slipped lower against the U.S. dollar on Tuesday, after data showed that consumer price inflation in the U.K. slowed to the lowest level since records began in February. In a report, the U.K. Office for National Statistics said the rate of consumer price inflation decelerated to 0.0% last month from 0.3% in January, compared to expectations for a 0.1% reading. Month-over-month, consumer price inflation increased 0.3% in February, in line with expectations and after dropping 0.9% in January.
USD/JPY
The dollar turned broadly higher against the Japanese yen on Tuesday, after upbeat U.S. consumer price inflation and new home sales data fuelled fresh optimism over the strength of the economy.
