Euro extends recovery ahead of major European data

Euro rose in European trade against a basket of major rivals away from two-week lows ahead of major European data in November, which provide strong clues on the performance of the economy in the last quarter of the year.

The dollar continues to decline ahead of the Federal Reserve's meeting minutes, which will provide clues on the pace of interest rates in December.

EUR/USD rose 0.4% to 1.0348, after closing up 0.6% yesterday, the first profit in four days away from two-week lows at 1.0222.

Major Data

Investors await important European data on the manufacturing and services PMIs to gauge activities in such sectors in November. 

The data will help determine the likely path for monetary policies and interest rates this year. 

Estimates

It's expected the data will show another slowdown in activities in November, in turn impacting monetary policies to come, and potentially forcing the ECB to scale back plans to raise interest rates quickly. 

The Dollar

The dollar index fell 0.3% on Wednesday for another session away from two-week highs at 107.99 against a basket of major rivals.

The dollar lost ground ahead of the Federal Reserve's meeting minutes expected to show clues on policies and interest rate decisions in December.