Investing.com - The dollar was trading close to 11-year peaks against a basket of other major currencies on Wednesday as markets awaited U.S. economic reports and a European Central Bank meeting for further indications on the direction of monetary policy.
The euro was at six-week lows, with EUR/USD down 0.45% to 1.1127.
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 activity in the service sector expanded at a slower pace than 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 dollar was little changed against the yen and the Swiss franc, with USD/JPY dipping to 119.63 and USD/CHF at 0.9617.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.26% to 95.68, not far from the 11-year high of 95.85 reached on January 26.
Sterling was slightly lower, with GBP/USD easing to 1.5344 after data showing the British service sector output expanded at a slower rate than expected in February, 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.
The Australian dollar was supported after data showing the economy grew in line with forecasts in the fourth quarter. AUD/USD was up 0.2% to 0.783, while NZD/USD rose 0.48% to 0.7587.
The Canadian dollar dipped ahead of a rate review by the Bank of Canada later in the day, with USD/CAD easing up 0.11% to 1.258. The BoC was widely expected to leave rates on hold, following a surprise rate cut in January.