Investing.com - The dollar was trading in a tight range against most of the other major currencies on Wednesday, while the pound rose to more than one-week highs after data showed that activity in the U.K. services sector expanded at the fastest rate in six-and-a-half years in August.
During European late morning trade, the dollar was lower against the pound, with GBP/USD advancing 0.40% to 1.5621.
Markit said the U.K. services purchasing managers’ index rose to 60.5 in August, the highest since December 2006, from 60.2 in July. Economists had forecast a decline to 59.0.
The report said new business grew for the eighth successive month and the latest increase was the largest seen in more than 16 years, adding to recent indications that the U.K. economic recovery is deepening.
The dollar was steady close to six-week highs against the euro, with EUR/USD inching up 0.02% to 1.3172.
The euro remained under pressure amid expectations that the European Central Bank would reiterate its pledge to keep rates on hold following its policy meeting on Thursday.
Earlier Wednesday, data showed that the final reading of Germany’s services PMI came in at 52.8 in August, up from a preliminary reading of 52.4. The euro zone’s services PMI dipped to 50.7, from an initial estimate for 51.0.
Meanwhile, data showed that euro zone retail sales rose by a seasonally adjusted 0.1% in July, below expectations for a 0.4% increase.
A separate report showed that the euro zone economy expanded by 0.3% in the second quarter, unrevised from the initial estimate.
The dollar was little changed close to one-month highs against the yen, with USD/JPY dipping 0.02% to 99.54.
Demand for the dollar continued to be underpinned after upbeat U.S. manufacturing data on Tuesday reinforced expectations that the Federal Reserve could start to phase out stimulus measures as soon as this month.
Concerns over possible U.S. military strikes against Syria continued to weigh on sentiment after top congressional leaders, including Republican House Speaker John Boehner and Democrat Nancy Pelosi said they would back President Obama's call for military intervention.
The dollar was fractionally lower against the Swiss franc, with USD/CHF edging down 0.03% to 0.9363.
Elsewhere, the greenback was broadly weaker against its Australian, New Zealand and Canadian counterparts, with AUD/USD advancing 0.98% to 0.9149, NZD/USD jumping 1.06% to 0.7883 and USD/CAD falling 0.38% to 1.0492.
The Australian dollar was boosted after data showed that the Australian economy grew 0.6% in the second quarter, in line with economists’ forecasts and expanded by a larger-than-forecast 2.6% on a year-over-year basis.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, edged down 0.08% to 82.31.
The U.S. was to publish a report on the trade balance later in the day.
