U.S. Dollar Mostly Lower

The U.S. dollar pulled back modestly in N.Y. trade on Tuesday, taking the dollar index from six-week highs of 93.91 to a low of 93.43 despite gains on Wall Street and steady Treasury yields.

After opening at session lows of 1.1696, EUR/USD advanced to 1.1773 highs during the North American session with stabilizing Spanish stocks supporting. The euro managed a very modest 0.15% gain to close the U.S. session at 1.1751 but continues to find strong resistance still lying at the 38.2% Fibonacci level of 1.18197.

USD/JPY closed higher for a third straight day even after surrendering most of its early gains, sliding off 113.13 at the N.Y. open following the release of a surprisingly soft NY ISM (declined into contractionary mode) and failure to breach 112.981/112.93 resistance. The dollar subsequently pulled back to 112.70, before making another attempt at 113.00. Falling just short of that level ahead of the close, the dollar, nonetheless, held onto a small gain at 112.90.

The British pound limped into the close for a third straight day, weighed down by the latest UK construction PMI. The index fell below 50.0 and dropped to its lowest level since July 2016. Accordingly, cable barely moved off 1.3240 for the bulk of the European and North American session, losing another 0.25% in value at 1.3245.

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