Investing.com – The U.S. dollar extended earlier gains against most of its major counterparts on Wednesday, after data showed that U.S. service industries expanded in December at the fastest pace since May 2006.
During European late afternoon trade, the greenback was sharply higher against the euro, with EUR/USD plunging 1.18% to hit 1.3149.
Earlier in the day, fresh concerns over Europe’s sovereign debt surfaced, following reports that the Swiss National Bank excluded Irish government bonds from being used as eligible collateral and after the yield on Portuguese Treasury bills rose sharply.
The greenback was also up against the pound with GBP/USD tumbling 0.79% to hit 1.5461. Earlier Wednesday, data showed that the U.K. construction sector contracted more-than-expected in December.
Meanwhile, the greenback posted steep gains against the yen and the Swiss franc, with USD/JPY jumping 1.58% to hit 83.33 and USD/CHF leaping 1.81% to hit 0.9657.
The greenback was also up against its Australian and New Zealand counterparts, with AUD/USD tumbling 0.73% to hit 0.9976 and NZD/USD falling 0.69% to hit 0.7609.
But the greenback was down against its Canadian cousin, with USD/CAD slipping 0.27% to hit 0.9957 after official data showed that Canadian producer prices rose more-than-expected in November.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, advanced 1.12%.
Earlier in the day, the Institute of Supply Management said its non-manufacturing purchasing manager's index rose to 57.1 in December, increasing for the eleventh consecutive month. Analysts had expected the PMI to rise to 55.7 in December.
In a separate report, payroll processing firm ADP said U.S. private sector employment rose by a seasonally adjusted 297K in December, more than the forecast 100K rise.
During European late afternoon trade, the greenback was sharply higher against the euro, with EUR/USD plunging 1.18% to hit 1.3149.
Earlier in the day, fresh concerns over Europe’s sovereign debt surfaced, following reports that the Swiss National Bank excluded Irish government bonds from being used as eligible collateral and after the yield on Portuguese Treasury bills rose sharply.
The greenback was also up against the pound with GBP/USD tumbling 0.79% to hit 1.5461. Earlier Wednesday, data showed that the U.K. construction sector contracted more-than-expected in December.
Meanwhile, the greenback posted steep gains against the yen and the Swiss franc, with USD/JPY jumping 1.58% to hit 83.33 and USD/CHF leaping 1.81% to hit 0.9657.
The greenback was also up against its Australian and New Zealand counterparts, with AUD/USD tumbling 0.73% to hit 0.9976 and NZD/USD falling 0.69% to hit 0.7609.
But the greenback was down against its Canadian cousin, with USD/CAD slipping 0.27% to hit 0.9957 after official data showed that Canadian producer prices rose more-than-expected in November.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, advanced 1.12%.
Earlier in the day, the Institute of Supply Management said its non-manufacturing purchasing manager's index rose to 57.1 in December, increasing for the eleventh consecutive month. Analysts had expected the PMI to rise to 55.7 in December.
In a separate report, payroll processing firm ADP said U.S. private sector employment rose by a seasonally adjusted 297K in December, more than the forecast 100K rise.