Investing.com - The dollar trimmed losses against the euro on Wednesday after U.S. data reinforced concerns over the outlook for the economic recovery, while investors awaited the outcome of the Federal Reserve’s latest meeting.
During U.S. morning trade, the dollar pulled back from two-month lows against the euro, with EUR/USD up 0.19% to 1.3193, off highs of 1.3242.
The Institute for Supply Management said its manufacturing purchasing managers’ index fell to 50.7 in April from 51.3 in March, compared to expectations for a decline to 50.9.
The report came 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 euro remained supported 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 eased back from two-and-a-half month lows against the pound, with GBP/USD up 0.13% to 1.5551, down from highs of 1.5596.
Sterling was boosted earlier after data 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 was fractionally lower against the yen, with USD/JPY slipping 0.08% to 97.32.
The dollar was also lower against the Swiss franc, with USD/CHF down 0.18% to 0.9276.
The greenback was sharply higher against its Australian, New Zealand and Canadian counterparts, with AUD/USD falling 0.82% to 1.0286, NZD/USD dropping 0.82% to 0.8494 and USD/CAD easing up 0.11% to 1.0082.
Earlier Wednesday, official data showed that China’s manufacturing PMI ticked down to 50.6 from an 11-month high of 50.9 in March, indicating that the recovery in the world’s second largest economy remains fragile.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.16% to 81.62.
During U.S. morning trade, the dollar pulled back from two-month lows against the euro, with EUR/USD up 0.19% to 1.3193, off highs of 1.3242.
The Institute for Supply Management said its manufacturing purchasing managers’ index fell to 50.7 in April from 51.3 in March, compared to expectations for a decline to 50.9.
The report came 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 euro remained supported 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 eased back from two-and-a-half month lows against the pound, with GBP/USD up 0.13% to 1.5551, down from highs of 1.5596.
Sterling was boosted earlier after data 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 was fractionally lower against the yen, with USD/JPY slipping 0.08% to 97.32.
The dollar was also lower against the Swiss franc, with USD/CHF down 0.18% to 0.9276.
The greenback was sharply higher against its Australian, New Zealand and Canadian counterparts, with AUD/USD falling 0.82% to 1.0286, NZD/USD dropping 0.82% to 0.8494 and USD/CAD easing up 0.11% to 1.0082.
Earlier Wednesday, official data showed that China’s manufacturing PMI ticked down to 50.6 from an 11-month high of 50.9 in March, indicating that the recovery in the world’s second largest economy remains fragile.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.16% to 81.62.