LONDON, Nov 19: The euro gained ground against the dollar on Tuesday as better-than-expected German manufacturing data contrasted against recent weak sales figures from some leading US retailers.

The single European currency firmed to $1.0124 from 1.0089 late on Monday in New York.

The dollar slipped to 120.93 yen from 121.02 late on Monday.

We have just seen a 1.5-per cent upward revision to Germany’s manufacturing orders for September ... This is lifting the euro, said Steve Pearson, chief strategist at HBOS Treasury Services.

German manufacturing orders fell 1.0 percent in September from the previous month on a seasonally adjusted basis, the Bundesbank said.

This compared with the economy ministry’s earlier statement that orders fell 2.5 per cent in the same period.

Separate figures showed that euro-zone industrial output fell 0.2 per cent in September compared with August and was down 0.6 per cent year-on-year.

The EU statistics office Eurostat also revised its estimate of August industrial output down to a rise of 0.2 per cent from a 0.6 per cent increase previously.

Analysts said neither set of figures changed market expectations that the European Central Bank (ECB) is poised to cut interest rates on December 5 to prop up the ailing euro-zone economy.

Such expectations were reinforced by comments from Bundesbank president Ernst Welteke, a member of the ECB’s rate-setting committee, who said the risks to the euro-zone economy were skewed towards the downside.

The risks of the economy tend to be — I am sorry to say — on the downside, Welteke said in a speech delivered at the Svedbank in Sweden.

Pearson said the dollar had been hampered by weak November sales reports from several leading US retailers, including supermarket giant Wal-Mart.

But BNP Paribas currency economist Iain Stannard said the euro still needed to breach technical resistance at $1.0135 if it was to continue its move towards the recent high of 1.0170 set last week.

News the Bank of Japan had left monetary policy unchanged was widely expected and had little impact on the market.

The euro was changing hands at 1.0124 dollars from 1.0089 late on Monday in New York, 122.45 yen (122.13), 0.6377 pounds (0.6378) and 1.4680 Swiss francs (1.4680).

The dollar was being quoted at 120.93 yen (121.02) and 1.4497 Swiss francs (1.4548).

The pound was at 1.5877 dollars (1.5809), 191.15 yen (191.38) and 2.3014 Swiss francs (2.3008).

On the London Bullion Market, the price of an ounce of gold rose to $319.50 from 318.75 late on Monday.—AFP