The dollar fell against most major currencies on Tuesday after US factory orders data came in lower than expected.
The US Census Bureau said factory orders dropped 3.4% in December, undercutting consensus expectations of -2.2%. The figures followed Monday’s disappointing data which said that consumer spending had fallen faster in December than it had since September 2009.
CMC Markets analyst Jasper Lawler said: “The US dollar was mostly lower today on the back of a string of poor US economic data that points to a further growth slowdown into the first quarter of 2015. Rallying commodity prices also meant US dollars were being sold in exchange.”
The EUR/USD grew 0.79% to 1.1433 on Monday while the dollar index, which measures the US currency against a basket of six others, fell 0.67% to $94.18.
Chris Beauchamp from IG added: “EUR/USD’s move back above $1.14 sees it break a level that has held the pair back for a week, a development likely to bring out technical buyers. James Bullard’s observation that the Fed’s overall move on rates should be slow and gradual has boosted the euro as well.”