Investing.com - The dollar continued to trade at 12-year highs against the other major currencies on Tuesday, as tepid Chinese economic growth data failed to boost investor confidence and as markets awaited the European Central Bank's upcoming policy statement on Thursday.
EUR/USD slipped 0.11% to 1.1591, not far from Friday's 11-year lows of 1.1459.
The euro showed little reaction to a report showing that the closely watched ZEW index of German economic sentiment rose to an 11-month high of 48.4 in January from 34.9 in December, ahead of forecasts of 40.0.
The report boosted hopes that Germany’s economy, the euro zone’s largest would rebound in 2015 after weakening at the end of last year.
The ZEW survey of euro zone economic sentiment increased to a six-month high of 45.2 from 31.8 in December, beating forecasts of 37.6.
Sentiment on the single currency remained vulnerable as investors waited to see if the ECB would embark on an outright quantitative easing program at its upcoming meeting on Thursday.
Uncertainty over the outcome of Greek elections, due to be held on Sunday, with anti-bailout party Syriza leading in the polls also weighed.
USD/JPY climbed 0.74% to a one-week high of 118.45. The safe-haven yen weakened after data on Tuesday showed that economic growth in China remained steady in the fourth quarter.
China’s economy expanded at an annual rate of 7.3% in the three months to December. Economists had expected growth in the world’s second-largest economy to slow to 7.2% from 7.3% in the third quarter.
On a quarter-over-quarter basis, China’s economy slowed to 1.5% from 1.9% in the third quarter, compared to forecasts for 1.7%.
Elsewhere, GBP/USD gained 0.31% to 1.5158, off nearly 18-month lows of 1.5058 hit overnight, while USD/CHF slid 0.64% to trade at 0.8735.
The commodity-linked currencies were broadly lower. AUD/USD edged down 0.15% to 0.8198 and NZD/USD dropped 0.80% to 0.7720, even as the New Zealand Institute of Economic Research earlier reported that its business confidence index rose to 23 in the fourth quarter from a reading of 19 in the three months to September.
USD/CAD rose 0.33% to trade at 1.1990, still hovering within striking distance of a more than five-year high of 1.2046.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.14% to 92.98, close to Friday's 12-year peak of 93.56.