The U.S. dollar was higher against its major counterparts in the European session on Tuesday, as a second wave of coronavirus cases in Europe and a pause in vaccine trial by Johnson and Johnson dampened sentiment.

Italy is considering a ban on private parties in response to a recent spike in new coronavirus cases, while French authorities are expected to impose new lockdowns in a bid to contain another surge in the virus cases.

The Czech Republic announced that it would close bars and shift most schools to distance learning.

Johnson & Johnson said it had temporarily halted its Covid-19 vaccine trial due to an unexplained illness in a participant.

Data from the Labor Department showed that U.S. consumer inflation improved modestly in September.

The consumer price index rose by 0.2 percent in September after climbing by 0.4 percent in August. The reading matched economist estimates.

Excluding food and energy prices, core consumer prices still edged up by 0.2 percent in September following the 0.4 percent growth seen in August. The uptick in core prices also matched estimates.

The currency firmed in the Asian session as Johnson & Johnson's move to pause its Covid-19 clinical trials prompted investors to seek the safe haven assets.

The greenback appreciated to 0.9118 against the franc, compared to 0.9089 hit late New York Monday. The greenback is seen finding resistance around the 0.94 mark.

The greenback hovered at a 4-day peak of 1.1778 against the euro, compared to Monday's closing value of 1.1810. Next key resistance for the greenback is likely seen around the 1.16 level.

Final data from Destatis showed that Germany's consumer prices declined in September, as initially estimated.

The consumer price index declined 0.2 percent yearly in September, after remining unchanged in August, as estimated earlier. Prices fell for the second time since the beginning of the year.

Extending early rally, the greenback hit a 4-day high of 1.2981 against the pound. The pair had finished yesterday's trading session at 1.3064. The greenback is likely to face resistance around the 1.25 region, if it gains again.

Data from the Office for National Statistics showed that the UK unemployment rate increased and employment declined in three months to August as the pandemic weighed on the labor market.

The ILO jobless rate rose by 0.4 percentage points from the preceding quarter to 4.5 percent in three months to August. The rate was above economists' forecast of 4.3 percent.

The greenback reached as high as 105.49 against the yen, up from yesterday's closing value of 105.33. Should the greenback strengthens further, it is likely to test resistance around the 108.00 region.

The greenback rebounded to 0.7170 against the aussie and 0.6642 against the kiwi, heading towards 4-day peaks of 0.7165 and 0.6629, respectively seen in the previous session. The greenback is poised to challenge resistance around 0.70 against the aussie and 0.645 against the kiwi.

Having dropped to 1.3099 at 8:30 am ET, the greenback turned higher against the loonie with the pair trading at 1.3140. The USD/CAD pair had registered a 4-day high of 1.3145 in the Asian session. Further uptrend may take the greenback to a resistance around the 1.33 area.

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