Investing.com - The dollar held gains against the other major currencies on Wednesday, following the release of mixed U.S. economic reports, as expectations for the Federal Reserve to soon begin scaling back its asset-purchase program continued to support the greenback.
During U.S. morning trade, USD/JPY edged up 0.14% to 102.67.
The Institute of Supply Management said its non-manufacturing purchasing manager's index declined to 53.9 in November from a reading of 55.4 in October. Analysts had expected the index to ease down to 55.0 last month.
In addition, the U.S. Census Bureau said new home sales rose by 25.4% to a seasonally adjusted 444,000 units in November, beating expectations for an increase to 428,000 and hitting a four-month high.
The reports came after data showed that U.S. non-farm private employment rose at the strongest pace in nine months in November, fuelling optimism over the U.S. labor market.
Payroll processing firm ADP said non-farm private employment rose by a seasonally adjusted 215,000 last month, blowing past expectations for an increase of 173,000. The previous month’s figure was revised up to a gain of 184,000 from a previously reported increase of 130,000.
A separate report showed that the U.S. trade deficit narrowed to a seasonally adjusted USD40.6 billion in October, from a deficit of USD43.0 billion in September, whose figure was revised from a previously reported deficit of USD41.8 billion.
Analysts had expected the U.S. trade deficit to narrow to USD40 billion in October.
Elsewhere, EUR/USD was down 0.31% to 1.3547.
In the euro zone, official data showed that retail sales fell 0.2% in October, confounding expectations for a 0.3% rise, after a 0.6% decline the previous month.
The report came after Markit said that the bloc's final services PMI inched up to 51.2 in November, up from a preliminary reading of 50.9 and compared to 51.6 in October.
The pound edged lower against the dollar, with GBP/USD down 0.32% to 1.6339.
Earlier in the day, Markit said the U.K. services PMI fell to 60.0 in November from a reading of 62.5 in October, which was the strongest since May 1997. Analysts had expected the index to decline to 62.0 last month.
The dollar edged higher against the Swiss franc, with USD/CHF adding 0.21% to 0.9062.
The greenback was broadly higher against the Australian, New Zealand and Canadian dollars, with AUD/USD tumbled 1.40% to 0.9007, NZD/USD declining 0.78% to 0.8177 and USD/CAD rising 0.39% to 1.0693.
In a widely expected move, the Bank of Canada held its benchmark interest rate at 1%. Commenting on the decision, BoC Governor Stephen Poloz said the risks of inflation staying below target “appear to be greater” in an economy that’s two years away from reaching full output.
The decision came after official data showed that Canada's trade balance swung into a surplus of CAD0.1 billion in October, from a deficit of CAD0.3 billion the previous month. Analysts had expected the trade deficit to widen to CAD0.7 billion in October.
In Australia, data earlier showed that the gross domestic product rose 0.6% in the third quarter, less than the expected 0.8% expansion, after a 0.7% rise in the three months to June.
The U.S. dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.32% to 80.88.
During U.S. morning trade, USD/JPY edged up 0.14% to 102.67.
The Institute of Supply Management said its non-manufacturing purchasing manager's index declined to 53.9 in November from a reading of 55.4 in October. Analysts had expected the index to ease down to 55.0 last month.
In addition, the U.S. Census Bureau said new home sales rose by 25.4% to a seasonally adjusted 444,000 units in November, beating expectations for an increase to 428,000 and hitting a four-month high.
The reports came after data showed that U.S. non-farm private employment rose at the strongest pace in nine months in November, fuelling optimism over the U.S. labor market.
Payroll processing firm ADP said non-farm private employment rose by a seasonally adjusted 215,000 last month, blowing past expectations for an increase of 173,000. The previous month’s figure was revised up to a gain of 184,000 from a previously reported increase of 130,000.
A separate report showed that the U.S. trade deficit narrowed to a seasonally adjusted USD40.6 billion in October, from a deficit of USD43.0 billion in September, whose figure was revised from a previously reported deficit of USD41.8 billion.
Analysts had expected the U.S. trade deficit to narrow to USD40 billion in October.
Elsewhere, EUR/USD was down 0.31% to 1.3547.
In the euro zone, official data showed that retail sales fell 0.2% in October, confounding expectations for a 0.3% rise, after a 0.6% decline the previous month.
The report came after Markit said that the bloc's final services PMI inched up to 51.2 in November, up from a preliminary reading of 50.9 and compared to 51.6 in October.
The pound edged lower against the dollar, with GBP/USD down 0.32% to 1.6339.
Earlier in the day, Markit said the U.K. services PMI fell to 60.0 in November from a reading of 62.5 in October, which was the strongest since May 1997. Analysts had expected the index to decline to 62.0 last month.
The dollar edged higher against the Swiss franc, with USD/CHF adding 0.21% to 0.9062.
The greenback was broadly higher against the Australian, New Zealand and Canadian dollars, with AUD/USD tumbled 1.40% to 0.9007, NZD/USD declining 0.78% to 0.8177 and USD/CAD rising 0.39% to 1.0693.
In a widely expected move, the Bank of Canada held its benchmark interest rate at 1%. Commenting on the decision, BoC Governor Stephen Poloz said the risks of inflation staying below target “appear to be greater” in an economy that’s two years away from reaching full output.
The decision came after official data showed that Canada's trade balance swung into a surplus of CAD0.1 billion in October, from a deficit of CAD0.3 billion the previous month. Analysts had expected the trade deficit to widen to CAD0.7 billion in October.
In Australia, data earlier showed that the gross domestic product rose 0.6% in the third quarter, less than the expected 0.8% expansion, after a 0.7% rise in the three months to June.
The U.S. dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.32% to 80.88.