The dollar rose against the euro and yen on Tuesday, helped up by solid U.S. manufacturing data in the previous session which indicated an improvement in the labour market. The Institute of Supply Management's activity index for February came in slightly lower than expected on Monday but the jobs component hit its highest level since 1987, which encouraged dollar bulls ahead of Friday's non-farm payrolls data. Euro zone jobs data is due later on Tuesday and forecast to remain unchanged at 8.8 percent in January. By 0815 GMT, the euro was down a third of a percent on the day at $1.2400 . The dollar rose a third of a percent against the yen to 109.30 yen .
Two rate decisions are due in the next 24 hours - a possible interest rate cut from the Bank of Canada at 1400 GMT and an expected pause in interest rate rises from the Reserve Bank of Australia at 2230 GMT. U.S. Federal Rserve Chairman Alan Greenspan speaks at 1730 GMT on the current account in New York. French consumer morale fell unexpectedly in February, coming in at minus 23 from minus 22 in January, dealing a blow to recovery hopes ahead of Thursday's European Central Bank interest rate decision. After speculation last week that the ECB may contemplate lowering rates, which weighed on the euro, the market now expects the central bank will leave rates steady this time. Comments from ECB President Jean-Claude Trichet will be heavily scrutinised for any hints of cuts to come.|||