Investing.com - The dollar extended losses against the other major currencies on Wednesday after data showed that the U.S. private sector added fewer-than-expected jobs in April, reinforcing expectations that the Federal Reserve will stick to its monetary easing program.
During European afternoon trade, the dollar hit two-month lows against the euro, with EUR/USD advancing 0.57% to 1.3240.
The dollar weakened after data showed that ADP nonfarm payrolls rose by 119,000 in April, well below expectations for an increase of 150,000.
The previous month’s figure was revised down to a gain of 131,000 from a previously reported increase of 158,000.
The weak data underlined concerns over the U.S. economic recovery as investors awaited the outcome of the Fed’s policy meeting later in the session for cues on the direction of monetary policy.
The data came one day after a report showed that the Chicago purchasing managers’ index slumped to the lowest level since September 2009 in April.
The euro gained ground despite growing expectations that the European Central Bank would cut rates at its meeting on Thursday after recent comments by ECB officials indicated that the bank would consider adjusting rates if economic data continued to deteriorate.
Data on Tuesday showed that euro zone unemployment rose to a record 12.1% in March, while inflation fell more-than-expected in April.
The dollar hit fresh two-and-a-half month lows against the pound, with GBP/USD up 0.36% to 1.5587 after data earlier in the session showed that the contraction in the U.K. manufacturing sector slowed in April.
Markit said that its U.K. manufacturing PMI rose to 49.8 from 48.6 in March, just below the 50 level that separates growth from contraction. Analysts had expected the index to tick down to 48.5.
The dollar erased gains against the yen, with USD/JPY down 0.29% to 97.12.
The dollar fell to two-week lows against the Swiss franc, with USD/CHF falling 0.44% to 0.9252.
The greenback was mixed against its Australian, New Zealand and Canadian counterparts, with AUD/USD down 0.21% to 1.0349, NZD/USD inching up 0.04% to 0.8567 and USD/CAD dipping 0.05% to 1.0065.
The Australian dollar remained lower after official data showed that China’s manufacturing PMI ticked down to 50.6 from an 11-month high of 50.9 in March, as new export orders fell.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.44% to 81.39.
Trade volumes looked set to remain thin on Wednesday, with many bourses in Europe shut for the Labor Day holiday.
The Institute of Supply Management was to publish its report on U.S. manufacturing activity later Wednesday.
During European afternoon trade, the dollar hit two-month lows against the euro, with EUR/USD advancing 0.57% to 1.3240.
The dollar weakened after data showed that ADP nonfarm payrolls rose by 119,000 in April, well below expectations for an increase of 150,000.
The previous month’s figure was revised down to a gain of 131,000 from a previously reported increase of 158,000.
The weak data underlined concerns over the U.S. economic recovery as investors awaited the outcome of the Fed’s policy meeting later in the session for cues on the direction of monetary policy.
The data came one day after a report showed that the Chicago purchasing managers’ index slumped to the lowest level since September 2009 in April.
The euro gained ground despite growing expectations that the European Central Bank would cut rates at its meeting on Thursday after recent comments by ECB officials indicated that the bank would consider adjusting rates if economic data continued to deteriorate.
Data on Tuesday showed that euro zone unemployment rose to a record 12.1% in March, while inflation fell more-than-expected in April.
The dollar hit fresh two-and-a-half month lows against the pound, with GBP/USD up 0.36% to 1.5587 after data earlier in the session showed that the contraction in the U.K. manufacturing sector slowed in April.
Markit said that its U.K. manufacturing PMI rose to 49.8 from 48.6 in March, just below the 50 level that separates growth from contraction. Analysts had expected the index to tick down to 48.5.
The dollar erased gains against the yen, with USD/JPY down 0.29% to 97.12.
The dollar fell to two-week lows against the Swiss franc, with USD/CHF falling 0.44% to 0.9252.
The greenback was mixed against its Australian, New Zealand and Canadian counterparts, with AUD/USD down 0.21% to 1.0349, NZD/USD inching up 0.04% to 0.8567 and USD/CAD dipping 0.05% to 1.0065.
The Australian dollar remained lower after official data showed that China’s manufacturing PMI ticked down to 50.6 from an 11-month high of 50.9 in March, as new export orders fell.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.44% to 81.39.
Trade volumes looked set to remain thin on Wednesday, with many bourses in Europe shut for the Labor Day holiday.
The Institute of Supply Management was to publish its report on U.S. manufacturing activity later Wednesday.