Euro hits three-month highs on recovery hopes

Euro rose in European trade on Wednesday to three-month highs against the dollar on track for seven days of consecutive gains, as risk appetite improved following upbeat Chinese services data. 

EUR/USD rose 0.5% to 1.1227, the highest since March 16, after closing up 0.3% yesterday, the sixth profit in a row, marking the longest streak of gains since March. 

The dollar index fell 0.3% on Wednesday, plumbing three-month lows at 97.29.

Haven demand plummeted on the dollar as risk appetite improved globally, while US protests dampened demand as well. 

Earlier Chinese data showed the services PMI at 55 in May, blowing past estimates of 47.4. 

In Europe, the European Central Bank is expected to expand the bonds purchases program from 750 billion euros to 1.250 trillion euros a month to support the economy.