Investing.com - The dollar held gains against the other major currencies on Tuesday, after data showed that U.S. consumer confidence improved far more-than-expected this month and that the U.S. goods trade deficit widened less-than-expected in November.
Heading into the final week of the year, trading volumes are expected to remain light as many traders already closed books, reducing liquidity in the market which could result in exaggerated moves.
EUR/USD slid 0.36% to 1.0927.
The Conference Board said that its consumer confidence index rose to 96.5 in December from 92.6 in November, whose figure was revised from a previously estimated 90.4. Analysts had expected the index to rise to 93.8 this month.
Earlier Tuesday, the U.S. Bureau of Economic Anaysis reported that the goods trade deficit widened to $60.50 billion last month from $58.41 billion in October. Analysts had expected the trade deficit to widen to $60.90 billion in November.
The data came after mixed U.S. economic reports released last week failed to offer clues as to how fast the U.S. central bank will raise interest rates next year.
With the first U.S. rate hike since 2006 out of the way, investors are now focusing on the pace of future rate increases.
USD/JPY held steady at 120.41.
Elsewhere, the dollar was higher against the pound and the Swiss franc, with GBP/USD down 0.54% at 1.4801 and with USD/CHF rising 0.35% to 0.9918.
The Australian and New Zealand dollars were stronger, with AUD/USD up 0.68% at 0.7298 and with NZD/USD gaining 0.41% to 0.6875.
Meanwhile, USD/CAD dropped 0.45% to trade at 1.3841.
The commodity-related loonie found support as crude oil futures for February delivery jumped 2.64% to $37.78 in U.S. morning trade, off the 11-year low of $35.98 hit on December 22.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.30% at 98.29, off the previous session’s 1-week low of 97.84.