Investing.com - The euro was up against the U.S. dollar and the yen on Wednesday, boosted by speculation that the European Central Bank may ease monetary policy in a bid to stabilize market sentiment, amid concerns over the deepening crisis in the euro zone.
During European late morning trade, the euro was higher against the U.S. dollar, with EUR/USD climbing 0.35% to hit 1.2494.
While the ECB was not widely expected to cut rates at its policy meeting later in the session, expectations mounted that the central bank could indicate that it is willing to ease policy as soon as next month, in a bid to help calm markets.
But investors remained jittery after Spain warned on Tuesday that it was having difficulty accessing credit markets, while uncertainty over the outcome of Greek elections on June 17 also weighed.
Earlier, revised data showed that the euro zone economy was stagnant in the first quarter, in line with preliminary estimates, but gross domestic product contracted at an annualized rate of 0.1% in the three months to March, compared to a preliminary flat reading.
A separate report showed that German industrial production dropped 2.2% in April, compared to expectations for a more modest 1.0% decline, fuelling concerns over the impact of the ongoing sovereign debt crisis on the region’s largest economy.
Elsewhere, the single currency was sharply higher against the yen, with EUR/JPY surging 0.77% to hit 98.79.
The euro slipped lower against the pound, with EUR/GBP losing 0.19% to hit 0.8078, but remained steady against the Swiss franc, with EUR/CHF dipping 0.02% to hit 1.2008.
In the U.K., a report showed that construction sector activity continued to expand in May, but the pace of growth moderated.
The Markit/CIPS U.K. construction purchasing managers' index came in at 54.4 in May, down on April's 55.8, but still well above the 50-point mark that separates growth from contraction. Economists had expected the index to decline to 54.2 in May.
The euro was also weaker against the Canadian, Australian and New Zealand dollars, with EUR/CAD slipping 0.12% to hit 1.2905, EUR/AUD tumbling 0.78% to hit 1.2681 and EUR/NZD down 0.51% to hit 1.6379.
The growth linked dollars were boosted earlier after official data showed that Australian economic growth outstripped expectations in the first quarter, with gross domestic product expanding 1.3%, well above forecasts for a gain of 0.5%.
The ECB rate announcement was to be followed by a press conference with bank head Mario Draghi to discuss the monetary policy decision and the economic outlook for the region.
During European late morning trade, the euro was higher against the U.S. dollar, with EUR/USD climbing 0.35% to hit 1.2494.
While the ECB was not widely expected to cut rates at its policy meeting later in the session, expectations mounted that the central bank could indicate that it is willing to ease policy as soon as next month, in a bid to help calm markets.
But investors remained jittery after Spain warned on Tuesday that it was having difficulty accessing credit markets, while uncertainty over the outcome of Greek elections on June 17 also weighed.
Earlier, revised data showed that the euro zone economy was stagnant in the first quarter, in line with preliminary estimates, but gross domestic product contracted at an annualized rate of 0.1% in the three months to March, compared to a preliminary flat reading.
A separate report showed that German industrial production dropped 2.2% in April, compared to expectations for a more modest 1.0% decline, fuelling concerns over the impact of the ongoing sovereign debt crisis on the region’s largest economy.
Elsewhere, the single currency was sharply higher against the yen, with EUR/JPY surging 0.77% to hit 98.79.
The euro slipped lower against the pound, with EUR/GBP losing 0.19% to hit 0.8078, but remained steady against the Swiss franc, with EUR/CHF dipping 0.02% to hit 1.2008.
In the U.K., a report showed that construction sector activity continued to expand in May, but the pace of growth moderated.
The Markit/CIPS U.K. construction purchasing managers' index came in at 54.4 in May, down on April's 55.8, but still well above the 50-point mark that separates growth from contraction. Economists had expected the index to decline to 54.2 in May.
The euro was also weaker against the Canadian, Australian and New Zealand dollars, with EUR/CAD slipping 0.12% to hit 1.2905, EUR/AUD tumbling 0.78% to hit 1.2681 and EUR/NZD down 0.51% to hit 1.6379.
The growth linked dollars were boosted earlier after official data showed that Australian economic growth outstripped expectations in the first quarter, with gross domestic product expanding 1.3%, well above forecasts for a gain of 0.5%.
The ECB rate announcement was to be followed by a press conference with bank head Mario Draghi to discuss the monetary policy decision and the economic outlook for the region.