Investing.com - The U.S. dollar was broadly higher against its major counterparts on Thursday, as markets turned to the European Central Bank’s upcoming policy meeting while Wednesday’s disappointing economic reports from the euro zone and the U.S. continued to weigh.
During European morning trade, the dollar was higher against the euro, with EUR/USD falling 0.10% to hit 1.3144.
Market sentiment was sharply hit on Wednesday after data showed that euro zone manufacturing activity slumped to a 34-month low in April, while the unemployment rate in the bloc climbed to a record 10.7% in March.
Investor confidence also weakened after U.S. data showed that the private sector added 119,000 jobs in April, far short of expectations for a gain of 177,000. It was the smallest increase in ADP nonfarm payrolls since September 2011.
Markets were jittery ahead of the European Central Bank’s policy-setting meeting later in the day, amid ongoing concerns over elevated borrowing costs for vulnerable peripheral nations, particularly Spain.
The greenback was higher against the pound, with GBP/USD falling 0.17% to hit 1.6171.
Sterling came under pressure after Market said the index of services activity for the U.K. fell to a four-month low in April, declining to 53.3 from 55.3 the previous month. Analysts had expected the index to fall to 54.4 in April.
The data came after a report by the Nationwide Building Society showed that house prices in the U.K. fell unexpectedly in April, ticking down 0.2% after a 1% decline the previous month.
Elsewhere, the greenback was higher against the yen and the Swiss franc, with USD/JPY rising 0.19% to hit 80.29 and USD/CHF edging up 0.08% to hit 0.9139.
The greenback was mixed against its Canadian, Australian and New Zealand counterparts, with USD/CAD edging down 0.07% to hit 0.9857, AUD/USD dropping 0.43% to hit 1.0288 and NZD/USD declining 0.97% to hit 0.8028.
Official data showed earlier that employment change in New Zealand rose less-than-expected in the first quarter, adding 0.4% after a 0.2% rise the previous quarter. Analysts had expected employment change to rise 0.5% in the first quarter.
The report also showed that the country’s unemployment rate rose to 6.7%, from 6.4% in the fourth quarter, disappointing expectations for a decline to 6.3%.
In Australia, industry data showed that the services activity index fell to 39.6 in April from 47.0 the previous month.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.12%, at 79.30.
Later in the day, the U.S. was to produce government data on unemployment claims, as well as preliminary data on nonfarm productivity and unit labor costs. In addition, the Institute of Supply Management was to produce a report on service sector growth.
During European morning trade, the dollar was higher against the euro, with EUR/USD falling 0.10% to hit 1.3144.
Market sentiment was sharply hit on Wednesday after data showed that euro zone manufacturing activity slumped to a 34-month low in April, while the unemployment rate in the bloc climbed to a record 10.7% in March.
Investor confidence also weakened after U.S. data showed that the private sector added 119,000 jobs in April, far short of expectations for a gain of 177,000. It was the smallest increase in ADP nonfarm payrolls since September 2011.
Markets were jittery ahead of the European Central Bank’s policy-setting meeting later in the day, amid ongoing concerns over elevated borrowing costs for vulnerable peripheral nations, particularly Spain.
The greenback was higher against the pound, with GBP/USD falling 0.17% to hit 1.6171.
Sterling came under pressure after Market said the index of services activity for the U.K. fell to a four-month low in April, declining to 53.3 from 55.3 the previous month. Analysts had expected the index to fall to 54.4 in April.
The data came after a report by the Nationwide Building Society showed that house prices in the U.K. fell unexpectedly in April, ticking down 0.2% after a 1% decline the previous month.
Elsewhere, the greenback was higher against the yen and the Swiss franc, with USD/JPY rising 0.19% to hit 80.29 and USD/CHF edging up 0.08% to hit 0.9139.
The greenback was mixed against its Canadian, Australian and New Zealand counterparts, with USD/CAD edging down 0.07% to hit 0.9857, AUD/USD dropping 0.43% to hit 1.0288 and NZD/USD declining 0.97% to hit 0.8028.
Official data showed earlier that employment change in New Zealand rose less-than-expected in the first quarter, adding 0.4% after a 0.2% rise the previous quarter. Analysts had expected employment change to rise 0.5% in the first quarter.
The report also showed that the country’s unemployment rate rose to 6.7%, from 6.4% in the fourth quarter, disappointing expectations for a decline to 6.3%.
In Australia, industry data showed that the services activity index fell to 39.6 in April from 47.0 the previous month.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.12%, at 79.30.
Later in the day, the U.S. was to produce government data on unemployment claims, as well as preliminary data on nonfarm productivity and unit labor costs. In addition, the Institute of Supply Management was to produce a report on service sector growth.