Strong U.S. data lift the dollar against the euro

Strong U.S. data lift the dollar against the euro


The dollar strengthened against the euro on Tuesday (Wednesday morning GMT ) , following better data on the U.S. services sector and weaker projections for growth in the euro zone .

At 21:00 GMT ( Wednesday at 4:00 pm ) , the euro traded at 1.3474 dollars , down from 1.3516 dollars on Monday , AFP reported .

The dollar slipped to 98.53 yen from 98.59 yen .

The euro also fell against the Japanese currency , falling to 132.76 yen from 133.25 yen .

Analysts pointed to a figure better than expected U.S. services sector from the Institute for Supply Management ( ISM ) , which said its index of purchasing managers in the non - manufacturing sector rose to 55.4 percent in October , a full point higher than September 54 , 4 per cent .

Analysts highlighted the surge in the number of jobs to the service sector , which accounts for about 80 percent of private sector jobs . Employment sub - index rose to 56.2 percent from 52.7 percent in September .

Better data on employment " makes us believe that the payroll data (payroll ) non - farm could surprise to the upside on Friday ( 8/11 ) , when the U.S. monthly jobs report released many monitored , said Kathy Lien director of the BK asset Management .

Better economic data increases the likelihood of the U.S. Federal Reserve will reduce its stimulus program sooner than expected , analysts said .

" With the improving U.S. economic data , U.S. government bond yields rose after the data , suggesting that traders believe the count has been added to the column stimulus reduction in December , " said Christopher Vecchio , currency analyst at DailyFX .

Meanwhile, the outlook for the euro faded after the European Union cut its 2014 forecast for growth in the 17-nation euro zone to just 1.1 percent , down from 1.2 percent forecast in May.

Among other currencies , the British pound rose to 1.6042 dollars from 1.5967 dollars on Monday ( 4/11 ) .

The dollar rose against the Swiss franc , the franc was trading 0.9135 compared with 0.9095 francs . ( Ant )