Investing.com - The U.S. dollar remained broadly lower against its major counterparts on Wednesday, following a report showing that the U.S. private sector added fewer-than-expected jobs in January, while the previous months figure was revised down.
During European afternoon trade, the dollar was lower against the euro, with EUR/USD advancing 0.73% to hit 1.3181.
Payroll processing firm ADP said non-farm private employment rose by a seasonally adjusted 170,000 in January, falling short of expectations for an increase of 190,000.
The previous month’s figure was revised down to a gain of 292,000 from a previously reported increase of 325,000.
The soft data underlined concerns over the outlook for the U.S. economic recovery, after the Federal Reserve pushed back the timing of likely interest rate hike to mid-2014 last week.
The euro strengthened against the greenback earlier after data showed that the euro zone’s manufacturing purchasing managers’ index rose to 48.8 from an earlier estimate of 46.9 in December, but the data showed that only Germany registered a reading above 50, indicating expansion.
The euro was also supported by hopes that negotiations with Greece’s creditors are very close to being concluded, but concerns have persisted that a debt swap deal with the country’s private bondholders will not go far enough to reduce the country’s debt load.
Meanwhile, Portugal saw bond yields fall at an auction of short-term government debt earlier, but yields on 10-year government bonds remained close to recent euro-era highs, amid worries that the country may also be forced to restructure its debt.
The greenback was also down against the pound, with GBP/USD rising 0.53% to hit 1.5843.
In the U.K., data showed that the manufacturing sector expanded at the fastest pace in eight months in January, as output grew at the fastest rate in 10 months and new orders rose.
The greenback was trading close to a three-month low against the yen, with USD/JPY shedding 0.21% to hit 76.10, fanning concerns over the risk of an intervention by Japanese authorities to curb the appreciation of the yen.
The greenback was also lower against the Swiss franc, with USD/CHF falling 0.67% to hit 0.9139.
Official data released earlier showed that Swiss retail sales rose less-than-expected in December, while manufacturing activity unexpectedly contracted in January, underlining expectations for weak growth in the Swiss economy in the coming months.
In addition, the greenback was weaker against its Canadian, Australian and New Zealand cousins, with USD/CAD down 0.38% to hit 0.9985, AUD/USD advancing 0.72% to hit 1.0700 and NZD/USD gaining 0.69% to hit 0.8322.
In a speech earlier, Australian Prime Minister Julia Gillard warned exporters that the high level of the domestic currency was likely to continue in the long term.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, dropped 0.59% to hit 79.97.
Later in the day, the U.S. Institute for Supply Management was to publish a report on manufacturing sector activity.
During European afternoon trade, the dollar was lower against the euro, with EUR/USD advancing 0.73% to hit 1.3181.
Payroll processing firm ADP said non-farm private employment rose by a seasonally adjusted 170,000 in January, falling short of expectations for an increase of 190,000.
The previous month’s figure was revised down to a gain of 292,000 from a previously reported increase of 325,000.
The soft data underlined concerns over the outlook for the U.S. economic recovery, after the Federal Reserve pushed back the timing of likely interest rate hike to mid-2014 last week.
The euro strengthened against the greenback earlier after data showed that the euro zone’s manufacturing purchasing managers’ index rose to 48.8 from an earlier estimate of 46.9 in December, but the data showed that only Germany registered a reading above 50, indicating expansion.
The euro was also supported by hopes that negotiations with Greece’s creditors are very close to being concluded, but concerns have persisted that a debt swap deal with the country’s private bondholders will not go far enough to reduce the country’s debt load.
Meanwhile, Portugal saw bond yields fall at an auction of short-term government debt earlier, but yields on 10-year government bonds remained close to recent euro-era highs, amid worries that the country may also be forced to restructure its debt.
The greenback was also down against the pound, with GBP/USD rising 0.53% to hit 1.5843.
In the U.K., data showed that the manufacturing sector expanded at the fastest pace in eight months in January, as output grew at the fastest rate in 10 months and new orders rose.
The greenback was trading close to a three-month low against the yen, with USD/JPY shedding 0.21% to hit 76.10, fanning concerns over the risk of an intervention by Japanese authorities to curb the appreciation of the yen.
The greenback was also lower against the Swiss franc, with USD/CHF falling 0.67% to hit 0.9139.
Official data released earlier showed that Swiss retail sales rose less-than-expected in December, while manufacturing activity unexpectedly contracted in January, underlining expectations for weak growth in the Swiss economy in the coming months.
In addition, the greenback was weaker against its Canadian, Australian and New Zealand cousins, with USD/CAD down 0.38% to hit 0.9985, AUD/USD advancing 0.72% to hit 1.0700 and NZD/USD gaining 0.69% to hit 0.8322.
In a speech earlier, Australian Prime Minister Julia Gillard warned exporters that the high level of the domestic currency was likely to continue in the long term.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, dropped 0.59% to hit 79.97.
Later in the day, the U.S. Institute for Supply Management was to publish a report on manufacturing sector activity.