Investing.com - The dollar was slightly higher against the euro on Wednesday despite data showing that that the euro zone economy returned to growth in the second quarter, exiting an 18-month recession. During European late morning trade, the dollar edged higher against the euro, with EUR/USD slipping 0.12% to 1.3245. The euro remained supported above the 1.3200 level after Eurostat said the bloc’s economy expanded by 0.3% in the three months to June. Economists had expected quarter-on-quarter growth of 0.2%. France’s economy expanded 0.5% in the three months to June, following two consecutive quarters of contraction, while Germany’s economy expanded by a larger than forecast 0.7%. Demand for the dollar continued to be underpinned after U.S. retail sales data on Tuesday reinforced the view that the economic recovery is strong enough for the Federal Reserve to begin phasing out its USD85 billion-a-month asset purchase program later this year. The dollar was steady against the yen, with USD/JPY dipping 0.03% to 98.18. The dollar slipped lower against the pound, with GBP/USD rising 0.15% to 1.5471. Sterling was boosted after official data showed that the U.K. unemployment rate remained unchanged at 7.8% in June, in line with expectations. The number of people claiming unemployment benefits fell by 29,200 in July, better than expectations for a decline of 15,000. Meanwhile, the minutes of the Bank of England’s July meeting showed that the decision to provide forward guidance on future rate increases was not unanimous. Last week the BoE announced plans to keep interest rates on hold at record lows as long as the U.K. unemployment rate remains above 7%. The BoE set out three conditions under which forward guidance on rates would not apply. One of these says bank will consider raising rates if medium term inflation expectations rise above 2.5% over 18 to 24 months. Monetary Policy Committee member Martin Weale favored a shorter time period but said he accepted the principles of forward guidance. The dollar rose to session highs against the Swiss franc, with USD/CHF climbing 0.41% to 0.9370. The greenback was mixed against its Australian, New Zealand and Canadian counterparts, with AUD/USD dipping 0.03% to 0.9108, NZD/USD rising 0.60% to 0.8011 and USD/CAD inching up 0.02% to 1.0348. In New Zealand, official data on Wednesday showed that retail sales rose 1.7% in the second quarter, better than expectations for a 1.4% increase, while core retail sales rose by a larger-than-forecast 2.3%. The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, edged up 0.07% to 81.85. The U.S. was to release data on produce price inflation later in the day.

Source