Investing.com - The dollar was mixed against the other major currencies on Wednesday, amid growing expectations for the Federal Reserve to soon begin tapering its stimulus program and as markets continued to focus on events in Syria.
During U.S. morning trade, the dollar was lower against the pound, with GBP/USD adding 0.29% to 1.5605 after data showed that activity in the U.K. services sector expanded at the fastest rate in six-and-a-half years in August..
Markit said the U.K. services purchasing managers’ index rose to 60.5 in August, the highest since December 2006, from 60.2 in July. Economists had forecast a decline to 59.0.
The report said new business grew for the eighth successive month and the latest increase was the largest seen in more than 16 years, adding to recent indications that the U.K. economic recovery is deepening.
The dollar was steady close to six-week highs against the euro, with EUR/USD inching up 0.02% to 1.3173.
Earlier Wednesday, data showed that the final reading of Germany’s services PMI came in at 52.8 in August, up from a preliminary reading of 52.4. The euro zone’s services PMI dipped to 50.7, from an initial estimate for 51.0.
Meanwhile, data showed that euro zone retail sales rose by a seasonally adjusted 0.1% in July, below expectations for a 0.4% increase.
A separate report showed that the euro zone economy expanded by 0.3% in the second quarter, unrevised from the initial estimate.
The dollar was steady against the yen, with USD/JPY edging up 0.06% to 99.62, and higher against the Swiss franc, with USD/CHF adding 0.13% to 0.9378.
Elsewhere, the greenback was broadly weaker against its Australian, New Zealand and Canadian counterparts, with AUD/USD jumping 1.28% to 0.9177, NZD/USD rallying 1.42% to 0.7911 and USD/CAD shedding 0.35% to 1.0497.
Data earlier showed that the Australian economy grew 0.6% in the second quarter, in line with economists’ forecasts and expanded by a larger-than-forecast 2.6% on a year-over-year basis.
Separately, the Bank of Canada held its benchmark interest rate at 1%, in a widely expected move, and said that current monetary policy remains appropriate as an expected rotation of demand to exports and investment is being delayed.
The decision came after official data showed that Canada's trade deficit widened to CAD0.9 billion in July, from an upwardly revised deficit of CAD0.4 billion the previous month, confounding expectations for the deficit to widen to CAD1 billion.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, edged down 0.08% to 82.31.
In the U.S., official data showed that the trade deficit widened more-than-expected in July, falling to USD39.2 billion from a downwardly revised USD34.5 billion deficit the previous month. Analysts had expected the trade deficit to widen to USD38.7 billion in July.
Investors remained cautious after top congressional leaders, including Republican House Speaker John Boehner and Democrat Nancy Pelosi said they would back President Obama's call for military intervention in Syria.
During U.S. morning trade, the dollar was lower against the pound, with GBP/USD adding 0.29% to 1.5605 after data showed that activity in the U.K. services sector expanded at the fastest rate in six-and-a-half years in August..
Markit said the U.K. services purchasing managers’ index rose to 60.5 in August, the highest since December 2006, from 60.2 in July. Economists had forecast a decline to 59.0.
The report said new business grew for the eighth successive month and the latest increase was the largest seen in more than 16 years, adding to recent indications that the U.K. economic recovery is deepening.
The dollar was steady close to six-week highs against the euro, with EUR/USD inching up 0.02% to 1.3173.
Earlier Wednesday, data showed that the final reading of Germany’s services PMI came in at 52.8 in August, up from a preliminary reading of 52.4. The euro zone’s services PMI dipped to 50.7, from an initial estimate for 51.0.
Meanwhile, data showed that euro zone retail sales rose by a seasonally adjusted 0.1% in July, below expectations for a 0.4% increase.
A separate report showed that the euro zone economy expanded by 0.3% in the second quarter, unrevised from the initial estimate.
The dollar was steady against the yen, with USD/JPY edging up 0.06% to 99.62, and higher against the Swiss franc, with USD/CHF adding 0.13% to 0.9378.
Elsewhere, the greenback was broadly weaker against its Australian, New Zealand and Canadian counterparts, with AUD/USD jumping 1.28% to 0.9177, NZD/USD rallying 1.42% to 0.7911 and USD/CAD shedding 0.35% to 1.0497.
Data earlier showed that the Australian economy grew 0.6% in the second quarter, in line with economists’ forecasts and expanded by a larger-than-forecast 2.6% on a year-over-year basis.
Separately, the Bank of Canada held its benchmark interest rate at 1%, in a widely expected move, and said that current monetary policy remains appropriate as an expected rotation of demand to exports and investment is being delayed.
The decision came after official data showed that Canada's trade deficit widened to CAD0.9 billion in July, from an upwardly revised deficit of CAD0.4 billion the previous month, confounding expectations for the deficit to widen to CAD1 billion.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, edged down 0.08% to 82.31.
In the U.S., official data showed that the trade deficit widened more-than-expected in July, falling to USD39.2 billion from a downwardly revised USD34.5 billion deficit the previous month. Analysts had expected the trade deficit to widen to USD38.7 billion in July.
Investors remained cautious after top congressional leaders, including Republican House Speaker John Boehner and Democrat Nancy Pelosi said they would back President Obama's call for military intervention in Syria.