Forex - Dollar broadly higher after upbeat U.S. data, pre-Fed

Published 11/03/2010, 11:49 AM
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Investing.com – The U.S. dollar was broadly higher against the other major currencies on Wednesday, after the release of better-than-expected U.S. economic data and ahead of a critical announcement by the Federal Reserve.

During European afternoon trade, the greenback was up against the euro, with EUR/USD shedding 0.13% to hit 1.4015.

Earlier in the day, U.S. payroll processing firm ADP said non-farm private employment rose significantly more-than-expected in October while a separate report showed that the U.S. ISM non-manufacturing purchasing manager's index rose for the tenth consecutive month in October.

The greenback was also up against the Swiss franc and the yen with USD/CHF gaining 0.08% to hit 0.9802 and USD/JPY soaring 0.93% to hit 80.38. Earlier Wednesday, official data showed that Swiss retail sales rose significantly more-than-expected in September.

But the greenback was down against the pound, with GBP/USD climbing 0.23% to hit 1.6076 after data showed that the CIPS/Markit U.K. services purchasing manager’s index rose unexpectedly in October to hit a 4-month high.

Elsewhere, the greenback was also down against its New Zealand counterpart but rose against its Canadian and Australian cousins with NZD/USD gaining 0.42% to hit 0.7746 while USD/CAD gained 0.15% to hit 1.0098 and AUD/USD fell 0.37% to hit 0.9958.

Earlier in the day, official data showed that the number of Australian building permits issued in September tumbled unexpectedly to hit their lowest level in six months.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.21%.

Later Wednesday, the U.S. Federal Reserve was to make its November rate statement. The announcement was widely expected to unveil a fresh round of Treasury bond purchases designed to support the U.S. economic recovery.

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