The Dollar Reaches New Highs Against the Euro, Sterling in Brexit and Data Weighing by Investing.com

Investing.com – The US dollar hit Tuesday's one-week high against the euro and the pound sterling early in the European session, bolstering earnings gains as a result of strong US data last week.

The lack of progress in negotiations between British and European leaders on the Brexit weighs equally on both currencies against the dollar, while the UK may not be able to leave the EU in March without a safety net thanks to transitional provisions for both.

Talks between UK legislators and representatives of the European Commission did not result in any significant progress on Monday, as reports suggested that support for British Prime Minister Theresa May inside his own party was breaking down again.

The pair fell to 1.1416 USD around 3:25 am ET (08:25 GMT), while the fall hit 1.3027 USD before rising slightly to 1.3031 USD.

European markets are facing a tough test this morning from a series of surveys of service and composite purchasing managers, as well as data from December.

In contrast, the dollar was slightly weaker at the start of European trade, after surpbading 110 yen for the first time this year on Monday against a backdrop of a general recovery in risk appetite.

Movements occur despite somewhat weaker data than expected for factory orders in the United States late Monday.

During the night, the Australian dollar had risen slightly after the impression more optimistic than forecast by the economic outlook. The RBA has left its key rate at 1.5%, as expected, but Governor Philip Lowe has refused to give up further interest rate cuts later in the year, despite the new sign of weakness in consumption in the December report on retail sales. At closing in Australia, it was 0.7243, up 0.3% on the day, while the pair was stable at 1.4524.

The was largely flat with local markets closed for Lunar New Year holidays.