Investing.com - The euro eased up to session highs against the dollar on Tuesday after data showed that U.S. consumer confidence deteriorated slightly this month, but the dollar remained supported after data showing U.S. economic growth was far stronger than initially estimated in the third quarter.
EUR/USD touched session highs of 1.2479 and was last up 0.16% to 1.2460.
Data on Tuesday showed that U.S. consumer confidence declined in November, one month after touching its highest level in seven years as optimism over the short term outlook waned.
The Conference Board reported that its consumer confidence index declined to 88.7 from 94.1 in October compared to expectations for an uptick to 95.9.
Demand for the dollar continued to be underpinned after the Commerce Department reported that the U.S. economy posted growth of 3.9% in the three months to September, far higher than the initial estimate of 3.5%. Economists had forecast a small downward revision to 3.3%.
Personal spending rose 2.2% in the third quarter, beating forecasts for 1.9%.
Another report showed that U.S. house prices rose more than expected on a year-over-year basis September, but were unchanged on a monthly basis.
The S&P/Case Shiller house price index was up 4.9% from a year earlier in September, compared to forecasts of a 4.7% gain.
In the euro zone, data on Tuesday confirmed that Germany narrowly avoided a recession in the third quarter, posting economic growth of 0.1%. Consumer spending rose by 0.7%, while exports were 1.9% higher.
Meanwhile, the Organization for Economic Co-operation and Development warned Tuesday that the euro area is at risk of deflation if growth stagnates or if inflation expectations continue to deteriorate. It urged the European Central Bank to embark on quantitative easing measures to spur growth in the region.
The single currency was almost unchanged against the yen, with EUR/JPY at 147.08, off lows 146.31.
OECD cut its forecast for economic growth in Japan this year and next after data last week showed that the country unexpectedly fell into a recession in the third quarter. However, it noted that the weaker yen would help the recovery by boosting exports.
The think-tank said it still expects the global economy to grow by 3.3% this year and 3.7% in 2015.
The US dollar index, which tracks the performance of the greenback against a basket of six major currencies, was down 0.20% to 88.01, holding below last week’s more than four-year highs of 88.51.