Investing.com - " The dollar fell to session lows against the
euro on Wednesday following media reports that European Central
Bank sources said a rate cut on Thursday was unlikely despite a
downturn in inflation last month.
During U.S. morning trade, the euro rose to session highs against
the dollar, with EUR/USD climbing 0.37% to 1.3525.
The euro strengthened following reports that ECB sources said the
bank was unlikely to cut rates at its monthly meeting on Thursday
despite data last week showing that euro zone annual inflation fell
to a four year low in October.
The euro had moved higher earlier in the session after robust
German factory data offset concerns over possible monetary easing
by the ECB in order to safeguard the economic recovery in the
German factory orders rose 3.3% in September, easily outstripping
expectations for a gain of 0.5% and were 7.9% higher on a
Meanwhile, revised data 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
more-than-expected in September.
While no policy change was expected from the ECB on Thursday many
investors expected the bank to signal the possibility of further
rate cuts at its meeting in December.
Elsewhere, the dollar edged higher against the yen, with USD/JPY
rising 0.16% to 98.65.
The dollar was lower against the pound, with GBP/USD up 0.22% to
1.6078 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.
The dollar was also lower against the Swiss franc, with USD/CHF
losing 0.28% to trade at 0.9109.
The greenback was trading close to two-week lows against the New
Zealand dollar, with NZD/USD rising 0.35% to 0.8392, following the
release of stronger-than-forecast third quarter New Zealand
The greenback was down against the Australian and Canadian dollars,
with AUD/USD rising 0.17% to 0.9523 and USD/CAD falling 0.35% to
The loonie, as the Canadian dollar is also known, shrugged off data
showing that the number of new building permits issued in Canada
rose 1.7% in September, below expectations for a gain of 6%.
The U.S. dollar index, which tracks the performance of the
greenback versus a basket of six other major currencies, was down
0.34% to 80.52.
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