Investing.com - The dollar remained mixed against the other major currencies on Tuesday, after the release of strong U.S. service sector data added to uncertainty over when the Federal Reserve plans to scale back its bond buying program.
During U.S. morning trade, the euro was lower against the dollar, with EUR/USD shedding 0.42% to 1.3458.
In a report, the Institute of Supply Management said its non-manufacturing purchasing manager's index rose to 55.4 in October from a reading of 54.4 in September.
Analysts had expected the index to decline to 54.0 last month.
But sentiment on the dollar remained vulnerable as comments by Fed 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."
Meanwhile, the euro remained under broad selling pressure after data last week showing that euro zone annual inflation fell to a four year low in October raised 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 on Thursday many investors expected the bank to signal the possibility of further monetary policy easing at its meeting in December.
The European Commission cut its forecast for euro zone growth on Tuesday and said that unemployment in the region remains at unacceptably high levels.
The EC said it now expects economic growth of 1.1% in 2014 down from 1.2% and said the growth rate is expected to rise to 1.7% in 2015.
Earlier Tuesday, data showed that euro zone producer price inflation was down 0.9% from a year earlier in September, compared to expectations for a 0.7% decline.
The dollar fell against the pound, with GBP/USD rising 0.42% to 1.6036 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 lower against the yen with USD/JPY slipping 0.10%, to 98.50 and higher against the Swiss franc, with USD/CHF rising 0.35% to 0.9130.
The greenback was higher against the Australian dollar, with AUD/USD down 0.19% 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 up 0.30% to 0.8309 and higher against the Canadian dollar, with USD/CAD adding 0.20% to 1.0445.
The U.S. dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, edged up 0.20% to 80.82.
During U.S. morning trade, the euro was lower against the dollar, with EUR/USD shedding 0.42% to 1.3458.
In a report, the Institute of Supply Management said its non-manufacturing purchasing manager's index rose to 55.4 in October from a reading of 54.4 in September.
Analysts had expected the index to decline to 54.0 last month.
But sentiment on the dollar remained vulnerable as comments by Fed 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."
Meanwhile, the euro remained under broad selling pressure after data last week showing that euro zone annual inflation fell to a four year low in October raised 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 on Thursday many investors expected the bank to signal the possibility of further monetary policy easing at its meeting in December.
The European Commission cut its forecast for euro zone growth on Tuesday and said that unemployment in the region remains at unacceptably high levels.
The EC said it now expects economic growth of 1.1% in 2014 down from 1.2% and said the growth rate is expected to rise to 1.7% in 2015.
Earlier Tuesday, data showed that euro zone producer price inflation was down 0.9% from a year earlier in September, compared to expectations for a 0.7% decline.
The dollar fell against the pound, with GBP/USD rising 0.42% to 1.6036 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 lower against the yen with USD/JPY slipping 0.10%, to 98.50 and higher against the Swiss franc, with USD/CHF rising 0.35% to 0.9130.
The greenback was higher against the Australian dollar, with AUD/USD down 0.19% 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 up 0.30% to 0.8309 and higher against the Canadian dollar, with USD/CAD adding 0.20% to 1.0445.
The U.S. dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, edged up 0.20% to 80.82.