The euro rallied against the Swiss franc and yen to pare recent losses on Tuesday, as Eurozone annual inflation breached the European Central Bank’s target for the first time in more than two years.
The harmonized consumer price index, or HICP, rose 2.2% year-on-year in December, a preliminary estimate from the European Union statistical office Eurostat showed Tuesday.
Elsewhere in Europe, UK manufacturing activity expanded at the strongest pace in 16 years in December, reflecting production and new order growth, a closely watched survey showed Tuesday. At the same time, cost pressures continued to build up in the economy.
The euro moved away from a record low against the Swiss franc, improving to CHF 1.2675 from a range near CHF 1.24.
The single currency also battled back against the against the yen, briefly rising above Y110 for the first time since before Christmas.
The euro leveled off against the dollar, easing from above $1.34 to $1.3350.
New orders received by U.S. factories unexpectedly rose in November, as orders excluding transportation recorded their largest gain in eight months.
The Commerce Department said orders for manufactured goods increased 0.7 percent after dropping by a revised 0.7 percent in October.
The U.S. Federal Reserve Board will publish the minutes of its latest rate-setting meeting, and ABC News/Washington Post release the ABC consumer confidence index for the week ending January 2.