Business at banks, airlines and hotels in the US expanded for the thirteenth month in a row in February, but at a slightly slower pace, according to figures published today. The Institute for Supply Management said its index of activity in the non-manufacturing sector fell to 53.9 last month from 54.5 in January, where a reading above 50.0 indicates expansion. The figure was broadly in line with expectations. The euro has eased against the dollar today, but analysts say the decline is due to profit taking after the single currency touched a four-year high of USD1.10 last night rather than any switch in dollar sentiment.
At 1500, profit taking left the euro sitting at USD1.0958, from USD1.0970 earlier, while it was also slightly weaker against sterling, at 68.52p, down from 68.80p. The dollar has come under renewed pressure this week after US Treasury Secretary John Snow said he was unconcerned with the greenback's current weakness and an index of manufacturing activity declined sharply in February. //www.fxcentre.com