Dollar slips vs. euro

NEW YORK (CNNMoney.com) – The dollar was mixed Tuesday as the euro rebounded from a one-month low on a report that showed a much-bigger-than-expected increase in German investor confidence in April.
At 4 p.m. ET, the dollar was down 0.1% against the 16-nation euro, which was trading at $1.2934.
The greenback fell 0.9% against the British pound, which rose to $1.4663. Meanwhile, the yen declined 0.9% against the dollar, falling to ¥98.75.
Germany’s April ZEW economic sentiment index, a forward-looking indicator, posted its sixth straight gain. It soared to positive 13% from negative 3.5%, the first time the index turned positive since July 2007.
However, while the index is a positive development it „does not tend to be the best predictor of future European growth,“ wrote Camille Sutton, analyst at Scotia Capital, in a research note.
The euro’s gains were limited amid disagreements among European Central Bank council members about future moves.
The European currency „recovered some lost ground this morning, but has not been able to break back above the psychological $1.3000 … and accordingly still feels somewhat heavy,“ Sutton wrote.
Speculation that the ECB will resort to „unconventional monetary policy tools“ even with a possible additional interest rate cut, also weighed on the euro, Sutton wrote.
The ECB is „playing catch up with other central banks“ but that period will soon be over, placing the euro in a better position over the medium term, Sutton added.