Improved European economic data boosted risk appetite on Wednesday, while the euro slipped and the dollar index rose slightly as markets balanced hopes for a global economic recovery with surging COVID-19 infections in the United States.

With transmission rates of the coronavirus falling in much of Europe, and economies opening up, IHS Markit's final euro zone Manufacturing Purchasing Managers' Index (PMI) moved closer to the 50-mark separating growth from contraction in June.

Germany's manufacturing sector also contracted at a slower pace as Europe's largest economy lifted restrictions.

The euro fell 0.2% versus the dollar to $1.12105 at 10:18 GMT, as currency markets moved sideways after a rally in which the euro gained 6% against the dollar in May and early June. The dollar was at 97.442 against a basket of currencies, having fallen overnight but strengthened in early London trading.

Source : Reuters