Investing.com - The euro struggled to build on gains against its global counterparts on Wednesday, as ongoing doubts over the sustainability of Greece’s debt load and disappointing business activity data from the region weighed on sentiment.
During European late morning trade, the euro dipped against the U.S. dollar, with EUR/USD inching down 0.08% to hit 1.3223.
Sentiment on the single currency continued to be weighed by uncertainty over whether Greece can follow through with fiscal reforms after euro zone finance ministers signed off on a EUR130 billion rescue package on Tuesday, removing the risk of an imminent default in March.
Meanwhile, preliminary data showed that manufacturing activity in the euro zone improved less-than-expected in February, remaining in contraction territory for the seventh consecutive month, while service sector activity contracted unexpectedly.
Data from Germany and France showed modest growth in business activity, albeit at a slower pace than in January, but activity in peripheral euro zone nation’s showed a steep decline this month.
A separate report showed that new industrial orders across the euro zone increased by 1.8% in December, erasing the previous month’s 1.1% drop.
Elsewhere, the euro was higher against the pound, with EUR/GBP rising 0.39% to hit 0.8418.
Sterling turned lower earlier, after the minutes of the Bank of England’s February meeting showed that two policymakers supported a GBP75 billion increase to the size of the bank’s asset purchase program, while the remainder of the monetary policy committee voted in favor of a GBP50 billion increase to GBP325 billion.
The majority of policymakers believed that an increase of more than GBP50 billion "risked sending a signal that the Committee thought the economic situation was weaker than it was."
The single currency was trading close to a three-month high against the broadly weaker yen, with EUR/JPY adding 0.56% to hit 106.11.
The yen remained under pressure after last week’s decision by the Bank of Japan to introduce further monetary easing measures.
Earlier Wednesday, an official from Japan's Ministry of Finance said that Japan would continue to monitor movements in the foreign exchange market and respond as appropriate.
The euro ticked up and down between small gains and losses against the Swiss franc, with EUR/CHF dipping 0.04% to hit 1.2070.
The euro retreated from recent record lows against the Australian and New Zealand dollars, with EUR/AUD adding 0.16% to hit 1.2431 and EUR/NZD climbing 0.23% to hit 1.5904.
Sentiment on the commodity linked currencies was dented after a preliminary report showed that China’s manufacturing sector contracting for a fourth straight month in February, adding to concerns over a slowdown in the world’s second largest economy.
The euro edged higher against the Canadian dollar, with EUR/CAD inching up 0.04% to hit 1.3198.
Later in the day, the U.S. was to publish industry data on existing home sales.
During European late morning trade, the euro dipped against the U.S. dollar, with EUR/USD inching down 0.08% to hit 1.3223.
Sentiment on the single currency continued to be weighed by uncertainty over whether Greece can follow through with fiscal reforms after euro zone finance ministers signed off on a EUR130 billion rescue package on Tuesday, removing the risk of an imminent default in March.
Meanwhile, preliminary data showed that manufacturing activity in the euro zone improved less-than-expected in February, remaining in contraction territory for the seventh consecutive month, while service sector activity contracted unexpectedly.
Data from Germany and France showed modest growth in business activity, albeit at a slower pace than in January, but activity in peripheral euro zone nation’s showed a steep decline this month.
A separate report showed that new industrial orders across the euro zone increased by 1.8% in December, erasing the previous month’s 1.1% drop.
Elsewhere, the euro was higher against the pound, with EUR/GBP rising 0.39% to hit 0.8418.
Sterling turned lower earlier, after the minutes of the Bank of England’s February meeting showed that two policymakers supported a GBP75 billion increase to the size of the bank’s asset purchase program, while the remainder of the monetary policy committee voted in favor of a GBP50 billion increase to GBP325 billion.
The majority of policymakers believed that an increase of more than GBP50 billion "risked sending a signal that the Committee thought the economic situation was weaker than it was."
The single currency was trading close to a three-month high against the broadly weaker yen, with EUR/JPY adding 0.56% to hit 106.11.
The yen remained under pressure after last week’s decision by the Bank of Japan to introduce further monetary easing measures.
Earlier Wednesday, an official from Japan's Ministry of Finance said that Japan would continue to monitor movements in the foreign exchange market and respond as appropriate.
The euro ticked up and down between small gains and losses against the Swiss franc, with EUR/CHF dipping 0.04% to hit 1.2070.
The euro retreated from recent record lows against the Australian and New Zealand dollars, with EUR/AUD adding 0.16% to hit 1.2431 and EUR/NZD climbing 0.23% to hit 1.5904.
Sentiment on the commodity linked currencies was dented after a preliminary report showed that China’s manufacturing sector contracting for a fourth straight month in February, adding to concerns over a slowdown in the world’s second largest economy.
The euro edged higher against the Canadian dollar, with EUR/CAD inching up 0.04% to hit 1.3198.
Later in the day, the U.S. was to publish industry data on existing home sales.