Euro little changed vs dollar amid euro zone recovery
The euro was little changed against the dollar on Wednesday after data showed the euro zone had emerged in the second quarter from its longest recession to date. The euro initially jumped on the news but elevated U.S. Treasury yields and growing expectations the Federal Reserve will begin to scale back stimulus as early as next month continued to bolster the dollar.
The euro was last little changed at $1.3255, off an earlier high of $1.3278. With stronger-than-expected growth in Germany and France, hauling the euro zone out of six consecutive quarters of contraction, analysts said a fragile recovery was probably taking hold.
The dollar fell against sterling as market participants brought forward expectations of a Bank of England interest rate hike on improving UK data and a surprise division among policymakers over the bank's rates guidance. The dollar was down 0.1 percent at 98.10 yen and traders said a move above 98.50 looked difficult in the near term.