Investing.com - The euro slid to six-week lows against the dollar on Wednesday following the release of mixed euro zone economic reports, as investors awaited details of the European Central Bank’s stimulus program on Thursday.
EUR/USD was down 0.39% to 1.1131, the weakest level since January 26.
Earlier Wednesday data showed that the euro zone services purchasing managers’ index ticked down to 53.7 in February from a preliminary estimate of 53.9. Though the figure was higher than January’s final reading of 52.7 it still indicated that service sector activity expanded at a slower pace that initially estimated.
The composite PMI, which measures services and manufacturing activity across the region, rose to a seven-month high of 53.3 in February from 52.6 in January, but was slightly lower than the preliminary estimate of 53.5.
Another report showed that euro zone retail sales jumped 1.1% in January, far more than estimates for a 0.1% increase and were 3.7% higher on a year-over-year basis. Economists had expected an annual increase of 1.9%.
The euro remained under heavy selling pressure ahead of Thursday’s ECB post-policy meeting press conference, where President Mario Draghi was expected to announce more details on its quantitative easing program, which is due to start this month.
The euro was also weaker against the yen and the pound, with EUR/JPY down 0.52% to 133.11 and EUR/GBP last at 0.7254, after falling to seven-year lows of 0.7236 earlier.
In the U.K. data on Wednesday showed that service sector output expanded at a slower rate than expected last month but still posted solid growth.
The U.K. services PMI ticked down to 56.7 from 57.2 in January. Economists had expected the index to rise to 57.5.
In other trade, the U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was near 11-year peaks at 95.72, 0.28% higher.
The dollar has strengthened so far this year as upbeat economic data indicated that the economic recovery was on track, supporting expectations for higher interest rates.
The U.S. was to release survey data on service sector activity and a report on private sector jobs growth later Wednesday, ahead of Friday’s nonfarm payrolls report.