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Forex - Dollar mostly lower on renewed risk appetite

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Investing.com - The U.S. dollar is trading mostly lower against its major rivals during Wednesday's Asian session as Tuesday's jump to a new all-time high by the Dow Jones Industrial Average could be serving as a sign that traders are renewing risk appetite.

In Asian trading Wednesday, EUR/USD rose 0.08% to 1.3062 as traders ponder Thursday's monetary policy decision by the European Central Bank. On Tuesday, a report showed Germany's services PMI rose to 54.7 in February, beating market calls for a 54.1 reading, according to Markit Economics.

Euro zone services PMI hit 47.9 compared with consensus forecasts for a 47.3 reading.

The Bank of England also will make monetary policy on Thursday and GBP/USD is higher by 0.14% at 1.5148 at this writing.

USD/JPY fell 0.22% 93.09 despite comments made by PIMCO's Bill Gross on Tuesday. In a media interview, Gross, manager of the world's largest bond fund, said USD/JPY is likely to trade to 100 as the Bank of Japan takes further action to weaken the yen.

Gross also said sterling will continue to decline because of quantitative easing, although the Bank of England ended its asset-buying regime in November. Sterling and the yen are the two worst-performing developed market currencies in the world this year.

Elsewhere, USD/CHF rose 0.01% to 0.9411 while USD/CAD fell 0.08% to 1.0264. The loonie appears to be getting a lift on news of the death of Venezuelan President Hugo Chavez, which is helping oil prices trades modestly higher.

AUD/USD jumped 0.25% to 1.0284 after Australia's Bureau of Statistics said the country's fourth-quarter GDP rose by 0.6%, matching analysts' expectations. Yesterday, the Reserve Bank of Australia opted against lowering interest rates.

NZD/USD also rose by 0.25% to 0.8332. The U.S. Dollar Index is off 0.12% at 82.01.

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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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