Investing.com - The dollar firmed against most major currencies earlier Tuesday after a private-sector hiring report beat expectations, though profit taking wiped out the greenback's earlier gains as investors sold to await official jobs data due out on Friday.
In U.S. trading on Wednesday, EUR/USD was up 0.03% at 1.3593.
Payroll processing firm ADP reported earlier that non-farm private employment rose by a seasonally adjusted 215,000 in November, blowing past expectations for an increase of 173,000.
November's figure was revised up to a gain of 184,000 from a previously reported increase of 130,000.
The news bolstered the dollar earlier by keeping expectations strong for the Federal Reserve to announce plans to taper its USD85 billion in monthly bond purchases in early 2014.
Fed bond purchases aim to boost economic recovery by driving down long-term interest rates, weakening the dollar in the process, though talk of their dismantling often strengthens the greenback.
The Bureau of Labor Statistics will release the official November jobs report on Friday, and uncertainty sparked a round of profit taking in afternoon trading that took back the greenback's earlier gains.
Hit-or-miss economic indicators elsewhere allowed for choppy trading as well.
The Institute of Supply Management said its non-manufacturing purchasing managers' index declined to 53.9 in November from a 55.4 in October.
Analysts were expecting 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
A separate report showed that the U.S. trade deficit narrowed to a seasonally adjusted USD40.6 billion in October from a USD43.0 billion deficit 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.
Meanwhile in Europe, retail sales fell 0.2% in October compared to expectations for a 0.3% rise, according to official data.
The report came after London-based Markit Economics said that the bloc's final service-sector PMI ticked up to 51.2 in November from a preliminary reading of 50.9 though still below October's 51.6 reading.
The greenback was up against the pound, with GBP/USD down 0.05% at 1.6383.
Markit Economics said its U.K. services purchasing managers index fell to 60.0 in November from 62.5 in October, which was the strongest since May 1997.
Analysts were expecting the index to decline to 62.0 last month.
The dollar was down against the yen, with USD/JPY down 0.33% at 102.19, and down against the Swiss franc, with USD/CHF down 0.21% at 0.9025.
The dollar was up against its cousins in Canada, Australia and New Zealand, with USD/CAD up 0.35% at 1.0688, AUD/USD down 1.15% at 0.9030 and NZD/USD trading down 0.59% at 0.8193.
The Bank of Canada earlier held its benchmark interest rate at 1%, in line with expectations.
BoC Governor Stephen Poloz said the risks of inflation staying below target “appear to be greater” in an economy viewed as 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 and beneath a 0.7% rise in the three months to June.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was flat at 80.63.
On Thursday, the U.S. is to publish a revised estimate of third-quarter gross domestic product, while the Labor Department is to release its weekly report on initial jobless claims. The U.S. is also to publish data on factory orders.
In U.S. trading on Wednesday, EUR/USD was up 0.03% at 1.3593.
Payroll processing firm ADP reported earlier that non-farm private employment rose by a seasonally adjusted 215,000 in November, blowing past expectations for an increase of 173,000.
November's figure was revised up to a gain of 184,000 from a previously reported increase of 130,000.
The news bolstered the dollar earlier by keeping expectations strong for the Federal Reserve to announce plans to taper its USD85 billion in monthly bond purchases in early 2014.
Fed bond purchases aim to boost economic recovery by driving down long-term interest rates, weakening the dollar in the process, though talk of their dismantling often strengthens the greenback.
The Bureau of Labor Statistics will release the official November jobs report on Friday, and uncertainty sparked a round of profit taking in afternoon trading that took back the greenback's earlier gains.
Hit-or-miss economic indicators elsewhere allowed for choppy trading as well.
The Institute of Supply Management said its non-manufacturing purchasing managers' index declined to 53.9 in November from a 55.4 in October.
Analysts were expecting 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
A separate report showed that the U.S. trade deficit narrowed to a seasonally adjusted USD40.6 billion in October from a USD43.0 billion deficit 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.
Meanwhile in Europe, retail sales fell 0.2% in October compared to expectations for a 0.3% rise, according to official data.
The report came after London-based Markit Economics said that the bloc's final service-sector PMI ticked up to 51.2 in November from a preliminary reading of 50.9 though still below October's 51.6 reading.
The greenback was up against the pound, with GBP/USD down 0.05% at 1.6383.
Markit Economics said its U.K. services purchasing managers index fell to 60.0 in November from 62.5 in October, which was the strongest since May 1997.
Analysts were expecting the index to decline to 62.0 last month.
The dollar was down against the yen, with USD/JPY down 0.33% at 102.19, and down against the Swiss franc, with USD/CHF down 0.21% at 0.9025.
The dollar was up against its cousins in Canada, Australia and New Zealand, with USD/CAD up 0.35% at 1.0688, AUD/USD down 1.15% at 0.9030 and NZD/USD trading down 0.59% at 0.8193.
The Bank of Canada earlier held its benchmark interest rate at 1%, in line with expectations.
BoC Governor Stephen Poloz said the risks of inflation staying below target “appear to be greater” in an economy viewed as 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 and beneath a 0.7% rise in the three months to June.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was flat at 80.63.
On Thursday, the U.S. is to publish a revised estimate of third-quarter gross domestic product, while the Labor Department is to release its weekly report on initial jobless claims. The U.S. is also to publish data on factory orders.