The U.S. dollar retained its perch in positive territory late-Tuesday trading, after catching a bid and climbing higher following some supportive economic data.
The ISM nonmanufacturing index for February came in at 59.7, beating estimates of 57.5 while also rising above the previous read. A reading of at least 50 reflects improving conditions.
The ICE U.S. Dollar Index DXY, +0.21% a measure of the currency against six major rivals, rose 0.2% to 96.831, adding to Monday’s gain.
Elsewhere, the British pound GBPUSD, -0.0076% bounced back from its earlier losses on Tuesday. Previous weakness followed reports that the U.K. government doesn’t expect any breakthrough to be achieved at a meeting between British Attorney General Geoffrey Fox and European Union chief negotiator Michel Barnier.
Meanwhile, the Bank of England said U.K. banks will be able to borrow in euros from the central bank starting next week, in the latest move to support the U.K.’s financial system in the event of an abrupt and messy break from the European Union. BOE Chairman Mark Carney said in testimony before the House of Lords that market expectations for U.K. interest rates may not be high enough, according to reports, leading sterling to pare some of its losses.
*GBP/USD PARES LOSS; CARNEY COMMENTS ON MARKET PRICING OF RATES #GBPUSD #EURGBP
...If a deal is approved and the UK leaves after perhaps only a short delay, then a rate hike could come back into play. @ING_Economics pic.twitter.com/rwOFx3DKPu
— Marc-André Fongern
