* Euro heads for one-month low, German IFO no help
* Australian dollar sheds 1 pct after softer CPI
* U.S. dollar within a whisker of 22-month high
* Graphic: World FX rates in 2019
(Recasts with euro weakness, adds quote, updates prices)
By Tommy Wilkes
LONDON, April 24 (Reuters) - The euro fell towards a one-month low
on Wednesday as the contrast between solid economic data in the United
States and souring confidence measures in the euro zone kept the
dollar supported near 22-month highs.
Australia's dollar was the biggest mover among the major
currencies, dropping one percent after weaker-than-expected inflation
numbers heightened the prospect of an interest rate cut.
Deteriorating German business morale, after a business climate
index for April came in below forecasts, was the latest signal that
economic performance in the euro zone is relatively weak.
The greenback, by contrast, was propelled higher by strong U.S.
housing data on Tuesday - the latest signal the American economy is
outperforming rivals, encouraging investors to snap up the dollar in
"We see the USD as about 10 percent overvalued on long-term
PPP (purchasing power parity) bases," Neil Dwane, Global
Strategist at Allianz Global Investors, told the Reuters Global Market
"But with the UK, Japan near recession, China keeping the
yuan stable and the euro facing a political summer it feels like the
USD is by default going to remain OK," he said, adding that was
especially the case if the Federal Reserve had to tighten interest
rates later in the year.
The dollar index , which measures the U.S. currency versus a
basket of six major rivals, stood at 97.622 after rising to 97.777
overnight, its highest since June 2017.
The euro weakened 0.2 percent to $1.1211 , but held
above its early April low of $1.1183.
The weakness in the euro allowed the Swiss franc to strengthen
from six-month lows marked on Tuesday.
The franc has been hit hard as investors dumped safe-haven
currencies during this year's rally in risk assets. It had recovered
0.3 percent to $1.1416 francs by 1045 GMT.
The Aussie fell to a 1-1/2 month low of $0.7027 .
Marshall Gittler, currency strategist at ACLS Global, said market
expectations for an Australian interest rate cut in May had grown.
He also noted data indicating currency managers were long the
Aussie. "That means there are plenty of sellers of AUD left in
the market," he said.
The Canadian dollar shed 0.3 percent to C$1.3461 and a six-week
low despite the recent rise in oil prices as investors bet the Bank of
Canada would stick to its dovish policy stance when it meets later on
Sterling extended recent losses to hit another two-month low of
$1.2915 , as pressure grows on British Prime Minister Theresa May to
come up with a Brexit plan amid stalled negotiations with the
opposition Labour party.
The yen was unchanged at 111.86 against the dollar.
Euro vs U.S. dollar Australian vs U.S. dollar
(Editing by Kirsten Donovan and Mark Potter)