WASHINGTON (dpa-AFX) - The U.S. dollar is displaying strength against most major currencies on Tuesday, reacting to a slew of economic data and the vote on Brexit.
In what turned out to be a historic defeat for the British government, Prime Minister Theresa May's Brexit plan was today voted out by 432 votes to 202.
Meanwhile, soon after the vote, the opposition leader in British Parliament, Jeremy Corbyn tabled a no confidence vote and May said the government will permit a no confidence motion to be debated.
May has reportedly said that she would hold discussions with other parties to find a resolution that would be acceptable to all for Britain's exit from the European Union, which is just about 2-1/2 months away.
The pound sterling is trading at $1.2867, little changed from previous close, after having dropped to $1.2675 earlier in the day.
The dollar is trading at 1.1414 against the Euro, rising from 1.1471 after data showed Germany's growth to have dropped to its slowest pace since 2013.
According to data released today, Germany's gross domestic product rose a price-adjusted and chain-linked 1.5 percent from 2017, when it expanded 2.2 percent. Growth was the weakest since 2013, when the economy expanded 0.5 percent.
The reasons for slower growth included a weaker global economy and poorer sales in the automobile industry due to the implementation of the new WLTP emission tests regime, the Economy Ministry said.
The German economy shrunk for the first time since early 2015 in the third quarter and at the fastest pace in nearly six years, mainly due to weak exports and car sales.
GDP fell 0.2 percent quarterly, marking the worst decline since the first quarter of 2013. Another contraction in the fourth quarter would mean the biggest euro area economy slipped into a technical recession, which is two consecutive quarters of negative growth.
A report from Eurostat showed eurozone's merchandise trade surplus fell to EUR 19 billion in November, from EUR 23.4 billion in the same month last year. Exports increased 1.9 percent year-on-year and imports rose 4.7 percent. Trade within the euro area grew 1.5 percent year-on-year.
The Japanese currency is trading at 108.60 yen against the dollar, easing from previous session's close of 108.15 yen.
The dollar index is up 0.35 points, or 0.37 percent, at 95.94, after moving between 95.47 and 96.26.
In U.S. economic news, a report from the Labor Department showed a modest decrease in producer prices in the U.S. in the month of December.
The Labor Department said its producer price index for final demand dipped by 0.2 percent in December after inching up by 0.1 percent in November. Economists had expected prices to slip by 0.1 percent.
Excluding food and energy prices, core producer prices edged down by 0.1 percent in December after climbing by 0.3 percent in November. Core prices had been expected to rise by 0.2 percent.
A report released by the Federal Reserve Bank of New York said New York manufacturing activity grew at its slowest pace in over a year in the month of January.
The New York Fed said its general business conditions index slumped to 3.9 in January after tumbling to a revised 11.5 in December. A positive reading still indicates growth, although economists had expected the index to show a much more modest decrease to 10.8.
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