The euro came under selling pressure on Tuesday as investors bet that the European Central Bank could cut or signal a future interest cut when it meets for its policy meeting on Thursday.
The single currency changed hands at $1.3476 from $1.3511 on Monday.
Also of note was the European Commission's downgrade to its Eurozone gross domestic product forecast for 2014 to 1.1% from 1.2% previously. The commission also expects the economy to contract 0.4% and joblessness to remain at its previous forecast of 12.2%.
Meanwhile interest in the dollar picked up after data showed US services-sector activity expanded at a faster than expected rate in October.
The Institute for Supply Management said its survey of purchasing managers rose to 55.4% in October from 54.4% in September. It came in ahead of expectations of a decline to 54.0% and gave strength to the view that the Federal Reserve may consider scaling back stimulus.
The dollar index, which measures the US dollar against a basket of six others, rose to 80.709 from 80.605 on Monday.
Sterling advanced to $1.6048 from $1.5952 on Monday as investors cheered a stronger than expected Markit/CIPS UK Services PMI for October. The index rose to 62.5 in October from September's 60.3 after a strong increase in new business.
Source: LiveCharts
The single currency changed hands at $1.3476 from $1.3511 on Monday.
Also of note was the European Commission's downgrade to its Eurozone gross domestic product forecast for 2014 to 1.1% from 1.2% previously. The commission also expects the economy to contract 0.4% and joblessness to remain at its previous forecast of 12.2%.
Meanwhile interest in the dollar picked up after data showed US services-sector activity expanded at a faster than expected rate in October.
The Institute for Supply Management said its survey of purchasing managers rose to 55.4% in October from 54.4% in September. It came in ahead of expectations of a decline to 54.0% and gave strength to the view that the Federal Reserve may consider scaling back stimulus.
The dollar index, which measures the US dollar against a basket of six others, rose to 80.709 from 80.605 on Monday.
Sterling advanced to $1.6048 from $1.5952 on Monday as investors cheered a stronger than expected Markit/CIPS UK Services PMI for October. The index rose to 62.5 in October from September's 60.3 after a strong increase in new business.
Source: LiveCharts
