Investing.com - The dollar slipped lower against the euro on Wednesday but losses were held in check with investors cautious ahead of the European Central Bank’s policy meeting and the U.S. jobs report for October later in the week.
During European morning trade, the euro pushed higher against the dollar, with EUR/USD rising 0.23% to 1.3506.
The euro found support as gains in European equities markets boosted market sentiment, despite renewed concerns over the outlook for the recovery in the region following the release of weak economic data.
Data on Wednesday 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.
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 after weak euro zone inflation data last week.
The dollar edged higher against the yen, with USD/JPY inching up 0.06% to 98.55.
Elsewhere, the dollar fell to one-week lows against the pound, with GBP/USD rising 0.39% to 1.6105 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 slipped lower against the Swiss franc, with USD/CHF losing 0.19% to trade at 0.9117.
The greenback was at two-week lows against the New Zealand dollar, with NZD/USD rising 0.46% to 0.8401.
The kiwi gained ground 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 0.23% to 0.9529 and USD/CAD slipping 0.11% to 1.0441.
The U.S. dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.24% to 80.60.
During European morning trade, the euro pushed higher against the dollar, with EUR/USD rising 0.23% to 1.3506.
The euro found support as gains in European equities markets boosted market sentiment, despite renewed concerns over the outlook for the recovery in the region following the release of weak economic data.
Data on Wednesday 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.
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 after weak euro zone inflation data last week.
The dollar edged higher against the yen, with USD/JPY inching up 0.06% to 98.55.
Elsewhere, the dollar fell to one-week lows against the pound, with GBP/USD rising 0.39% to 1.6105 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 slipped lower against the Swiss franc, with USD/CHF losing 0.19% to trade at 0.9117.
The greenback was at two-week lows against the New Zealand dollar, with NZD/USD rising 0.46% to 0.8401.
The kiwi gained ground 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 0.23% to 0.9529 and USD/CAD slipping 0.11% to 1.0441.
The U.S. dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.24% to 80.60.