The euro struggled above recent five-month lows against the dollar in early European trade on Tuesday as markets awaited fresh signals on the outlook for U.S. and European interest rates. Europe's single currency has tripped to a series of five-month lows on the dollar in recent sessions as investors bet U.S. interest rates would rise soon and fretted that the European Central Bank may cut its borrowing costs. Investors will now watch U.S. consumer confidence data at 1400 GMT to back expectations of a rate hike, although an expected fall in confidence could worry dollar bulls.
Meanwhile in the euro zone, ECB President Jean-Claude Trichet presents the banks's annual report to a European parliamentary committee from 0830 GMT and markets will be looking for any signs of a dovish tone. At 0645 GMT, the euro traded at $1.1880 , little changed on the day, after Monday's unexpectedly strong reading of the German Ifo institute's key business confidence survey pushed it up from five-month lows around $1.1760. The dollar was slightly down on the day versus the yen as trading in the Japanese currency quietened down ahead of a holiday week starting on Thursday.
Federal Reserve Chairman Alan Greenspan also speaks on Thursday at a conference on global energy security. Euro zone balance of payments data for February is due out at 0800 GMT and a host of U.S. numbers are due from the United States at 1400 GMT, including existing home sales and the closely-watched consumer confidence. Confidence is expected to have eased slightly in April to 88.0 percent from 88.3 percent in March, under pressure from record-high gasoline prices and continued worries over job growth. For full report on major currencies click on [FRX/] For previous updates on currency Moves click on [USD/-M]///