Investing.com - The dollar was broadly lower against a basket of other major currencies on Wednesday, as ongoing uncertainty over the strength of the U.S. economy continued to weigh and investors eyed upcoming U.S. data to be released later in the day.
The dollar remained under pressure after the latest U.S. trade data indicated that the economy may have contracted in the first quarter.
Investors were looking ahead to the ADP report on private sector jobs growth later in the day ahead of Friday’s government report, as well as a speech by Federal Reserve Chair Janet Yellen, which would be closely watched for any indications on the timing of the first hike in interest rates.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.17% to 95.11.
EUR/USD rose 0.39% to 1.1229 after data showed that euro zone private sector activity remained solid in April.
The euro area final composite purchasing managers' index came in at 53.9 in April, up from a preliminary reading of 53.5 and just below March's 11-month high of 54.0.
A separate report showed that euro zone retails sales fell 0.8% in March, worse than forecasts for a 0.7% decline.
The pound edged higher, with GBP/USD up 0.11% to 1.5192 after data showed that growth in the U.K. service sector jumped to an eight-month high in April.
Research firm Markit said the U.K. services PMI rose to 59.5 in April from 58.9 in March. Economists had forecast a decline to 58.5.
But investors remained cautious ahead of Thursday’s elections which were widely expected to result in a hung parliament and an unstable coalition government.
Elsewhere, the dollar was steady against the yen, with USD/JPY at 119.81 and lower against the Swiss franc, with USD/CHF sliding 0.33% to 0.9233.
The Australian dollar was higher, with AUD/USD up 0.43% to 0.7976, while NZD/USD tumbled 1% to 0.7481.
The kiwi weakened after Statistics New Zealand reported that the number of employed people rose by 0.7% in the first quarter, disappointing expectations for a 0.8% gain, after an increase of 1.2% in the last three months of 2014.
The report also showed that New Zealand's unemployment rate rose to 5.8% in the three months to March from 5.7% in the previous quarter, compared to expectations for a decline to 5.5%.
USD/CAD slid 0.31% to trade at 1.2029.