Investing.com - The U.S. dollar extended gains against most of its major counterparts on Thursday, despite the release of stronger-than-expected data on U.S. private sector employment, as concerns over the financial crisis in the euro zone continued to dominate market sentiment.
During European afternoon trade, the dollar remained sharply higher against the euro, with EUR/USD tumbling 0.91% to hit 1.2822.
U.S. payroll processing firm ADP said non-farm private employment posted the largest monthly gain since December 2010 last month, increasing by a seasonally adjusted 325,000, blowing past expectations for an increase of 175,000.
The previous month’s figure was revised up to a gain of 204,000 from a previously reported increase of 206,000.
A separate report showed that the number of people who filed for unemployment assistance in the U.S. last week fell more-than-expected, dropping by 15,000 to a seasonally adjusted 372,000, beating expectations for a decline to 375,000.
Safe haven demand for the greenback was boosted earlier as concerns over the health of the euro zone banking sector intensified after a report on Wednesday showed that that overnight deposits at the European Central Bank reached an all-time high this week, indicating that European banks remain unwilling to lend to each other.
Meanwhile, France sold EUR4.02 billion of 10-year bonds at an average yield of 3.29%, compared with 3.18% at a similar auction last month. Bids exceeded the amount sold 1.6 times, down from a bid-to-cover ratio of 3.1 in December.
France is seen as vulnerable to losing its triple-A credit rating in the coming weeks, after it was put on negative watch by ratings agencies Standard & Poor’s and Fitch’s in December, amid concerns over the handling of the financial crisis in the euro zone.
The greenback was also higher against the pound, with GBP/USD shedding 0.67% to hit 1.5513.
A report earlier showed that service sector activity in the U.K. unexpectedly accelerated to a five-month high in December, easing concerns that growth in the country’s economy is faltering.
Elsewhere, the greenback was up against the yen and the Swiss franc, with USD/JPY adding 0.26% to hit 76.91 and USD/CHF rallying 0.81% to hit 0.9491.
Earlier in the day, a senior Japanese government official said Japan will continue to closely monitor moves in the foreign exchange market and act appropriately after the U.S. criticized last years currency market interventions by Japan.
The greenback was also stronger against its counterparts in Canada, Australia and New Zealand, with USD/CAD easing up 0.13% to hit 1.0140, AUD/USD tumbling 0.76% to hit 1.0288 and NZD/USD losing 0.45% to hit 0.7839.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, surged 0.73% to hit 80.97.
Later in the day, the Institute of Supply Management was to release a report on U.S. service sector activity.
During European afternoon trade, the dollar remained sharply higher against the euro, with EUR/USD tumbling 0.91% to hit 1.2822.
U.S. payroll processing firm ADP said non-farm private employment posted the largest monthly gain since December 2010 last month, increasing by a seasonally adjusted 325,000, blowing past expectations for an increase of 175,000.
The previous month’s figure was revised up to a gain of 204,000 from a previously reported increase of 206,000.
A separate report showed that the number of people who filed for unemployment assistance in the U.S. last week fell more-than-expected, dropping by 15,000 to a seasonally adjusted 372,000, beating expectations for a decline to 375,000.
Safe haven demand for the greenback was boosted earlier as concerns over the health of the euro zone banking sector intensified after a report on Wednesday showed that that overnight deposits at the European Central Bank reached an all-time high this week, indicating that European banks remain unwilling to lend to each other.
Meanwhile, France sold EUR4.02 billion of 10-year bonds at an average yield of 3.29%, compared with 3.18% at a similar auction last month. Bids exceeded the amount sold 1.6 times, down from a bid-to-cover ratio of 3.1 in December.
France is seen as vulnerable to losing its triple-A credit rating in the coming weeks, after it was put on negative watch by ratings agencies Standard & Poor’s and Fitch’s in December, amid concerns over the handling of the financial crisis in the euro zone.
The greenback was also higher against the pound, with GBP/USD shedding 0.67% to hit 1.5513.
A report earlier showed that service sector activity in the U.K. unexpectedly accelerated to a five-month high in December, easing concerns that growth in the country’s economy is faltering.
Elsewhere, the greenback was up against the yen and the Swiss franc, with USD/JPY adding 0.26% to hit 76.91 and USD/CHF rallying 0.81% to hit 0.9491.
Earlier in the day, a senior Japanese government official said Japan will continue to closely monitor moves in the foreign exchange market and act appropriately after the U.S. criticized last years currency market interventions by Japan.
The greenback was also stronger against its counterparts in Canada, Australia and New Zealand, with USD/CAD easing up 0.13% to hit 1.0140, AUD/USD tumbling 0.76% to hit 1.0288 and NZD/USD losing 0.45% to hit 0.7839.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, surged 0.73% to hit 80.97.
Later in the day, the Institute of Supply Management was to release a report on U.S. service sector activity.