Investing.com - The U.S. dollar was higher against almost all of the other major currencies on Wednesday, as weak euro zone service sector data fuelled fears over the economic outlook for the bloc, while investors awaited more details of the European Central Bank’s bond purchasing program.
During European morning trade, the dollar was up against the euro, with EUR/USD down 0.43% to 1.2512.
The euro weakened broadly after data showed that service sector activity in the euro zone contracted at a slightly faster rate than initially estimated in August, fuelling fears that the bloc is entering a technical recession.
Markit said that its revised services purchasing managers’ index ticked down to 47.2 in August from a preliminary reading of 47.5, defying expectations to remain unchanged.
Germany's services sector contracted at its fastest rate in three years, with the PMI coming in at 48.3.
Sentiment on the single currency was also hit by growing doubts over whether the ECB will announce more details of measures to help stabilize the region’s sovereign debt markets after its policy meeting on Thursday.
The greenback was also higher against the pound, with GBP/USD sliding 0.17% to 1.5843.
The pound remained supported after stronger-than-forecast service sector data for August fuelled hopes that the Bank of England would refrain from implementing further stimulus measures at its policy meeting on Thursday.
Markit said its services purchasing managers’ index rose to 53.7, the highest level since March, from a reading of 51.0 in July.
The data was inadvertently published by Reuters on Tuesday, a day ahead of schedule.
Elsewhere, the greenback was little changed against the yen, with USD/JPY dipping 0.04% to 78.40, but pushed higher against the Swiss franc, with USD/CHF climbing 0.46% to trade at 0.9600.
The Swiss franc was little changed after official data showed that consumer price inflation in Switzerland was flat in August, compared to expectations for a 0.1% increase.
The greenback was higher against its Canadian, Australian and New Zealand counterparts, with USD/CAD up 0.27% to 0.9885, AUD/USD losing 0.50% to trade at 1.0173 and NZD/USD down 0.26% to 0.7922.
The Australian dollar weakened after official data showed that the country’s gross domestic product expanded by 0.6% in the second quarter, disappointing expectations for growth of 0.7%, following a 1.4% expansion in the three months to March.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.31% to 81.61.
Later Wednesday, the U.S. was to release revised data on nonfarm productivity, while the euro zone was to produce official data on retail sales.
During European morning trade, the dollar was up against the euro, with EUR/USD down 0.43% to 1.2512.
The euro weakened broadly after data showed that service sector activity in the euro zone contracted at a slightly faster rate than initially estimated in August, fuelling fears that the bloc is entering a technical recession.
Markit said that its revised services purchasing managers’ index ticked down to 47.2 in August from a preliminary reading of 47.5, defying expectations to remain unchanged.
Germany's services sector contracted at its fastest rate in three years, with the PMI coming in at 48.3.
Sentiment on the single currency was also hit by growing doubts over whether the ECB will announce more details of measures to help stabilize the region’s sovereign debt markets after its policy meeting on Thursday.
The greenback was also higher against the pound, with GBP/USD sliding 0.17% to 1.5843.
The pound remained supported after stronger-than-forecast service sector data for August fuelled hopes that the Bank of England would refrain from implementing further stimulus measures at its policy meeting on Thursday.
Markit said its services purchasing managers’ index rose to 53.7, the highest level since March, from a reading of 51.0 in July.
The data was inadvertently published by Reuters on Tuesday, a day ahead of schedule.
Elsewhere, the greenback was little changed against the yen, with USD/JPY dipping 0.04% to 78.40, but pushed higher against the Swiss franc, with USD/CHF climbing 0.46% to trade at 0.9600.
The Swiss franc was little changed after official data showed that consumer price inflation in Switzerland was flat in August, compared to expectations for a 0.1% increase.
The greenback was higher against its Canadian, Australian and New Zealand counterparts, with USD/CAD up 0.27% to 0.9885, AUD/USD losing 0.50% to trade at 1.0173 and NZD/USD down 0.26% to 0.7922.
The Australian dollar weakened after official data showed that the country’s gross domestic product expanded by 0.6% in the second quarter, disappointing expectations for growth of 0.7%, following a 1.4% expansion in the three months to March.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.31% to 81.61.
Later Wednesday, the U.S. was to release revised data on nonfarm productivity, while the euro zone was to produce official data on retail sales.