Investing.com - The dollar fell to session lows against the euro on Wednesday after upbeat German factory data offset concerns over possible rate cuts by the European Central Bank in the coming months.
During European afternoon trade, the euro pushed higher against the dollar, with EUR/USD rising 0.35% to 1.3522.
The euro gained ground after a report showed that German factory orders rose 3.3% in September, easily outstripping expectations for a gain of 0.5% and were 7.9% higher on a year-over-year basis.
The euro’s gains were held in check amid concerns that the ECB might cut rates in order to safeguard the economic recovery in the region.
While no policy change was expected from the ECB at its monthly meeting on Thursday many investors expected the bank to signal the possibility of further monetary policy easing at its meeting in December.
Earlier Wednesday, revised data showed that the final reading of the euro zone’s services purchasing managers’ index ticked down to 51.6 in October from 52.2 in September, but was higher than a preliminary estimate of 50.9.
A separate report showed that euro zone retail sales fell 0.6% in September, compared to expectations for a 0.4% decline.
Elsewhere, the dollar edged higher against the yen, with USD/JPY rising 0.12% to 98.61.
The dollar was lower against the pound, with GBP/USD rising 0.30% to 1.6090 after better-than-forecast data on U.K. manufacturing output added to signs that the economic recovery is gaining traction.
Manufacturing production in the U.K. rose 1.2% in September, above expectations for a 1.1% increase and was 0.8% higher on a year-over-year basis, beating forecasts for a 0.7% annual gain, data on Wednesday showed.
Industrial production rose 0.9% in September, compared to expectations for a 0.5% increase and was 2.2% higher than in the same month last year.
The dollar was also lower against the Swiss franc, with USD/CHF losing 0.27% to trade at 0.9110.
The greenback fell to two-week lows against the New Zealand dollar, with NZD/USD rising 0.45% to 0.8402.
The kiwi was boosted after data released on Wednesday showed that the number of employed people in New Zealand rose 1.2% in the third quarter, beating expectations for a 0.5% rise.
The country’s unemployment rate fell to 6.2% in the last quarter, from 6.4% in the previous quarter, in line with expectations.
The greenback was lower against the Australian and Canadian dollars, with AUD/USD rising 0.20% to 0.9528 and USD/CAD slipping 0.15% to 1.0437.
The U.S. dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.28% to 80.57.
During European afternoon trade, the euro pushed higher against the dollar, with EUR/USD rising 0.35% to 1.3522.
The euro gained ground after a report showed that German factory orders rose 3.3% in September, easily outstripping expectations for a gain of 0.5% and were 7.9% higher on a year-over-year basis.
The euro’s gains were held in check amid concerns that the ECB might cut rates in order to safeguard the economic recovery in the region.
While no policy change was expected from the ECB at its monthly meeting on Thursday many investors expected the bank to signal the possibility of further monetary policy easing at its meeting in December.
Earlier Wednesday, revised data showed that the final reading of the euro zone’s services purchasing managers’ index ticked down to 51.6 in October from 52.2 in September, but was higher than a preliminary estimate of 50.9.
A separate report showed that euro zone retail sales fell 0.6% in September, compared to expectations for a 0.4% decline.
Elsewhere, the dollar edged higher against the yen, with USD/JPY rising 0.12% to 98.61.
The dollar was lower against the pound, with GBP/USD rising 0.30% to 1.6090 after better-than-forecast data on U.K. manufacturing output added to signs that the economic recovery is gaining traction.
Manufacturing production in the U.K. rose 1.2% in September, above expectations for a 1.1% increase and was 0.8% higher on a year-over-year basis, beating forecasts for a 0.7% annual gain, data on Wednesday showed.
Industrial production rose 0.9% in September, compared to expectations for a 0.5% increase and was 2.2% higher than in the same month last year.
The dollar was also lower against the Swiss franc, with USD/CHF losing 0.27% to trade at 0.9110.
The greenback fell to two-week lows against the New Zealand dollar, with NZD/USD rising 0.45% to 0.8402.
The kiwi was boosted after data released on Wednesday showed that the number of employed people in New Zealand rose 1.2% in the third quarter, beating expectations for a 0.5% rise.
The country’s unemployment rate fell to 6.2% in the last quarter, from 6.4% in the previous quarter, in line with expectations.
The greenback was lower against the Australian and Canadian dollars, with AUD/USD rising 0.20% to 0.9528 and USD/CAD slipping 0.15% to 1.0437.
The U.S. dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.28% to 80.57.