Investing.com - The dollar trimmed gains but remained broadly supported against the other majors currencies on Tuesday, as the release of strong U.S. data added to optimism over the strength of the economy.
Official data showed that the second estimate of third quarter U.S. gross domestic product rose 3.2%, up from the initial reading of a 2.9% expansion.
Analysts were looking for a smaller upward revision to just 3.0%.
In addition, the Conference Board said its consumer confidence index rose to 107.1 this month from a reading of 100.8 in October, whose figure was revised from a previously reported 98.6.
Analysts had expected the index to increase to 101.2 in November.
The upbeat data added to optimism over the outlook for the U.S. economy amid expectations that increased fiscal spending and tax cuts under the Trump administration will spur economic growth and inflation.
The strong report also added to expectations that the Federal Reserve will decide to raise interest rates at its December policy meeting.
EUR/USD eased up 0.08% to 1.0624.
Elsewhere, GBP/USD gained 0.76% to trade at 1.2509.
Earlier Tuesday, the Bank of England said net lending to individuals rose by £4.9 billion in October, compared to expectations for an increase of £4.8 billion and after a £4.7 billion gain the previous month.
USD/JPY advanced 0.70% to 112.72, while USD/CHF added 0.16% to 1.0139.
Official data earlier showed that Japan’s household spending declined by 1.0% last month, disappointing expectations for a 0.1% rise and after an increase of 2.8% in September.
The Australian dollar remained weaker, with AUD/USD down 0.11% at 0.7473, while NZD/USD climbed 0.72% to 0.7124.
Meanwhile, USD/CAD rose 0.25% to trade at 1.3442.
Market participants were also looking ahead to Wednesday’s OPEC meeting, amid growing uncertainty over the possibility for a production cut deal.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was steady at 101.16, off session highs of 101.69 but still close to last Thursday’s 14-year peak of 102.12.