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Dollar mixed vs. rivals amid Fed uncertainty

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Investing.com - " The dollar was mixed against the other major currencies on Tuesday, as markets were jittery amid growing uncertainty over whether the Federal Reserve will begin scaling back its stimulus program before the year end.

During European afternoon trade, the euro was lower against the dollar, with EUR/USD shedding 0.32% to 1.3470.

The euro remained under broad selling pressure after data last week showing that euro zone annual inflation fell to a four year low in October raised concerns that the ECB might cut rates in order to safeguard the economic recovery in the region.

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.

The European Commission cut its forecast for euro zone growth on Tuesday and said that unemployment in the region remains at unacceptably high levels.

The EC said it now expects economic growth of 1.1% in 2014 down from 1.2% and said the growth rate is expected to rise to 1.7% in 2015.

Meanwhile, data showed that euro zone producer price inflation was down 0.9% from a year earlier in September, compared to expectations for a 0.7% decline.

The dollar was lower against the yen, with USD/JPY down 0.24% to 98.36.

The dollar came under pressure after comments by Federal Reserve officials on Monday indicated that the bank is likely to keep its stimulus program in place for some time to come.

Federal Reserve Bank of Boston President Eric Rosengren said bank should keep its asset purchase program in place until there is "compelling evidence of a sustainable recovery making satisfactory progress toward full employment."

Elsewhere, the dollar fell to session lows against the pound, with GBP/USD rising 0.44% to 1.6040 after data showed that activity in the dominant U.K. services sector expanded at the fastest rate in 16 years in October.

Markit said the U.K. services purchasing managers index rose to 62.8 in October up from 60.3 in September, the sharpest rise in activity since May 1997. Economists had been expecting the index to tick down to 59.8.

The dollar was higher against the Swiss franc, with USD/CHF up 0.34% to 0.9129.

The greenback was higher against the Australian dollar, with AUD/USD easing 0.08% to 0.9502.

Australia's dollar weakened after Reserve Bank of Australia Chairman Glenn Stevens said the Aussie remained "uncomfortably high" and that "a lower level of the exchange rate is likely to be needed to achieve balanced growth in the economy".

The comments came after the bank left rates on hold at 2.5%.

The greenback was lower against the New Zealand dollar, with NZD/USD rising 0.24% to 0.8303 and higher against the Canadian dollar, with USD/CAD adding 0.22% to 1.0446.

The U.S. dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, edged up 0.15% to 80.77.

The Institute of Supply Management was to release data on U.S. service activity later in the trading day.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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