Investing.com - The dollar edged higher against the euro on Tuesday with investors cautious ahead of the European Central Bank’s monthly meeting and the U.S. nonfarm payrolls report later in the week.
During European morning trade, the euro slipped lower against the dollar, with EUR/USD dipping 0.08% to 1.3503.
The shared currency looked likely to remain broadly weaker in the run-up to Thursday’s ECB meeting after weak euro zone inflation data last week raised concerns that the bank will cut rates in order to safeguard the economic recovery in the region.
The dollar was lower against the yen, with USD/JPY down 0.35% to 98.24.
The dollar came under pressure after comments by Federal Reserve officials on Monday indicated that the bank is likely to keep its stimulus program in place for some time to come.
Federal Reserve Bank of Boston President Eric Rosengren said bank should keep its asset purchase program in place until there is "compelling evidence of a sustainable recovery making satisfactory progress toward full employment."
Elsewhere, the dollar fell to session lows against the pound, with GBP/USD rising 0.49% to 1.6047 after data showed that activity in the dominant U.K. services sector expanded at the fastest rate in 16 years in October.
Markit said the U.K. services purchasing managers index rose to 62.8 in October up from 60.3 in September, the sharpest rise in activity since May 1997. Economists had been expecting the index to tick down to 59.8.
The dollar was almost unchanged against the Swiss franc, with USD/CHF inching up 0.08% to 0.9104.
The greenback was higher against the Australian dollar, with AUD/USD sliding 0.18% to 0.9491.
Australia’s dollar weakened after Reserve Bank of Australia Chairman Glenn Stevens said the Aussie remained "uncomfortably high" and that "a lower level of the exchange rate is likely to be needed to achieve balanced growth in the economy".
The comments came after the bank left rates on hold at 2.5%.
The greenback was lower against the New Zealand dollar, with NZD/USD rising 0.42% to 0.8318 and edged higher against the Canadian dollar, with USD/CAD inching up 0.09% to 1.0432.
The U.S. dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, dipped 0.06% to 80.61.
The Institute of Supply Management was to release data on U.S. service activity later in the trading day.
During European morning trade, the euro slipped lower against the dollar, with EUR/USD dipping 0.08% to 1.3503.
The shared currency looked likely to remain broadly weaker in the run-up to Thursday’s ECB meeting after weak euro zone inflation data last week raised concerns that the bank will cut rates in order to safeguard the economic recovery in the region.
The dollar was lower against the yen, with USD/JPY down 0.35% to 98.24.
The dollar came under pressure after comments by Federal Reserve officials on Monday indicated that the bank is likely to keep its stimulus program in place for some time to come.
Federal Reserve Bank of Boston President Eric Rosengren said bank should keep its asset purchase program in place until there is "compelling evidence of a sustainable recovery making satisfactory progress toward full employment."
Elsewhere, the dollar fell to session lows against the pound, with GBP/USD rising 0.49% to 1.6047 after data showed that activity in the dominant U.K. services sector expanded at the fastest rate in 16 years in October.
Markit said the U.K. services purchasing managers index rose to 62.8 in October up from 60.3 in September, the sharpest rise in activity since May 1997. Economists had been expecting the index to tick down to 59.8.
The dollar was almost unchanged against the Swiss franc, with USD/CHF inching up 0.08% to 0.9104.
The greenback was higher against the Australian dollar, with AUD/USD sliding 0.18% to 0.9491.
Australia’s dollar weakened after Reserve Bank of Australia Chairman Glenn Stevens said the Aussie remained "uncomfortably high" and that "a lower level of the exchange rate is likely to be needed to achieve balanced growth in the economy".
The comments came after the bank left rates on hold at 2.5%.
The greenback was lower against the New Zealand dollar, with NZD/USD rising 0.42% to 0.8318 and edged higher against the Canadian dollar, with USD/CAD inching up 0.09% to 1.0432.
The U.S. dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, dipped 0.06% to 80.61.
The Institute of Supply Management was to release data on U.S. service activity later in the trading day.