Investing.com - The U.S. dollar extended gains against most of the other major currencies on Wednesday, ahead of the U.S. open as uncertainty over the timing of a Spanish bailout and a string of weak services sector data bolstered safe haven demand.
During European afternoon trade, the dollar was higher against the euro, with EUR/USD slipping 0.15% to 1.2899.
In the U.S., payroll processing firm ADP said U.S. non-farm private employment increased by a seasonally adjusted 162,000 in September, surpassing expectations for an increase of 143,000.
The previous month’s figure was revised down to a gain of 189,000 from a previously reported increase of 201,000.
Investors remained cautious as uncertainty over the timing of a Spanish bailout persisted after the country’s prime minister said Tuesday that a request for aid was not imminent, despite ongoing speculation that Madrid is moving closer to requesting external financial aid.
Market sentiment remained on the back foot after a string of weak service sector data earlier in the session fuelled concerns over the outlook for the global economic recovery.
The final euro zone services PMI came in at 46.1 in September, well below the 50 level which separates contraction from expansion.
The greenback was trading close to a three-week high against the pound, with GBP/USD down 0.24% to 1.6092.
Sterling remained under pressure after data showed that the U.K. service sector shed jobs for the first time in 10 months in September as growth slowed; undermining hopes for a sustained recovery in the recession hit economy.
Elsewhere, the greenback pushed higher against the yen and the Swiss franc, with USD/JPY climbing 0.38% to 78.45 and USD/CHF up 0.18% to 0.9380.
The greenback added to gains against its Canadian, Australian and New Zealand counterparts, with USD/CAD rising 0.34% to 0.9874, AUD/USD down 0.46% to 1.0219 and NZD/USD falling 0.77% to 0.8211.
Earlier Wednesday, official data showed that Australia posted the largest trade deficit in three-and-a-half years in August as export demand slowed, one day after the country’s central bank cut interest rates for the third time in six months.
Meanwhile, official data showed that growth in China’s service sector moderated in September, underlining concerns over a slowdown in the world’s second largest economy.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, climbed 0.23% to 80.03.
Later in the day, the Institute of Supply Management was to produce data on U.S. service sector activity.
During European afternoon trade, the dollar was higher against the euro, with EUR/USD slipping 0.15% to 1.2899.
In the U.S., payroll processing firm ADP said U.S. non-farm private employment increased by a seasonally adjusted 162,000 in September, surpassing expectations for an increase of 143,000.
The previous month’s figure was revised down to a gain of 189,000 from a previously reported increase of 201,000.
Investors remained cautious as uncertainty over the timing of a Spanish bailout persisted after the country’s prime minister said Tuesday that a request for aid was not imminent, despite ongoing speculation that Madrid is moving closer to requesting external financial aid.
Market sentiment remained on the back foot after a string of weak service sector data earlier in the session fuelled concerns over the outlook for the global economic recovery.
The final euro zone services PMI came in at 46.1 in September, well below the 50 level which separates contraction from expansion.
The greenback was trading close to a three-week high against the pound, with GBP/USD down 0.24% to 1.6092.
Sterling remained under pressure after data showed that the U.K. service sector shed jobs for the first time in 10 months in September as growth slowed; undermining hopes for a sustained recovery in the recession hit economy.
Elsewhere, the greenback pushed higher against the yen and the Swiss franc, with USD/JPY climbing 0.38% to 78.45 and USD/CHF up 0.18% to 0.9380.
The greenback added to gains against its Canadian, Australian and New Zealand counterparts, with USD/CAD rising 0.34% to 0.9874, AUD/USD down 0.46% to 1.0219 and NZD/USD falling 0.77% to 0.8211.
Earlier Wednesday, official data showed that Australia posted the largest trade deficit in three-and-a-half years in August as export demand slowed, one day after the country’s central bank cut interest rates for the third time in six months.
Meanwhile, official data showed that growth in China’s service sector moderated in September, underlining concerns over a slowdown in the world’s second largest economy.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, climbed 0.23% to 80.03.
Later in the day, the Institute of Supply Management was to produce data on U.S. service sector activity.