The U.S. dollar traded lower against the most major currencies after the speech by the Fed Chair Janet Yellen. Yellen testified before the Senate Banking Committee in Washington on Tuesday. She said it is unlikely that the Fed will raise its interest rate in "the next couple of FOMC meetings".
The Fed Chair noted that the central bank will change the wording of the policy statement when it will raise its interest rate.
The Conference Board released its consumer confidence index for the U.S. on Tuesday. The index fell to 96.4 in February from 103.8 in January, missing expectations for a decline to 99.6. January's figure was revised up from 102.9.
The decline was driven by weaker short-term outlook.
The S&P/Case-Shiller home price index increased 4.5% in December, in line with expectations, after a 4.3% gain in November.
Chairman of the index committee at S&P Dow Jones Indices David Blitzer said that "the housing recovery is faltering". He noted that construction and new home sales is still weak.
The euro traded higher against the U.S. dollar after Greek proposal of economic reforms was approved by creditors.
Eurozone's consumer price index dropped 1.6% in January, after a 0.1% decrease in December.
On a yearly basis, Eurozone's final consumer price inflation remained unchanged at 0.6% in January, in line with expectations.
Eurozone's consumer price inflation excluding food, energy, alcohol and tobacco remained unchanged at an annual rate of 0.6% in January, in line with expectations.
Germany's final GDP grew 0.7% in fourth quarter, in line with expectations.
The National Bank of Belgium (NBB) released its business survey on Tuesday. The business climate rose to -8.3 in February from -8.8 in January.
The increase was driven by positive developments in the manufacturing industry, in business-related services and in trade.
The British pound traded higher against the U.S. dollar in the absence of any major economic reports from the U.K. The Bank of England (BoE) policymaker Martin Weale said today that the BoE could start hiking its interest rates sooner than expected.
The Canadian dollar traded higher against the U.S. dollar ahead of the speech by the Bank of Canada Governor Stephen Poloz.
The Swiss franc traded mixed against the U.S. dollar. The number of employed people climbed to 4,230 million in the fourth quarter from 4,227 million in the third quarter. Analysts had expected the number of employed people to decline to 4,220 million.
The New Zealand dollar traded higher against the U.S. dollar. In the overnight trading session, the kiwi declined against the greenback after the weak Reserve Bank of New Zealand' inflation expectations. Inflation expectations declined to 1.8% in the fourth quarter from 2.1% in the third quarter.
The Australian dollar rose against the U.S. dollar. In the overnight trading session, the Aussie fell against the greenback in the absence of any major economic reports from Australia.
The Japanese yen traded higher against the U.S. dollar. In the overnight trading session, the yen traded lower against the greenback in the absence of any major economic reports from Japan.