Investing.com - The euro added to gains against the U.S. dollar on Wednesday, rallying to a session high in spite of slightly weaker-than-forecast U.S. data on employment and manufacturing activity.
EUR/USD hit 1.3202 during U.S. morning trade, the session high; the pair subsequently consolidated at 1.3172, gaining 0.68%.
The pair was likely to find support at 1.2930, the low of January 25 and short-term resistance at 1.3213, Tuesday’s high.
The U.S. Institute for Supply Management said its index of purchasing managers rose to 54.1 in January, from a revised reading of 53.1 in December, slightly missing expectations for an increase to 54.5.
A report earlier showed that the U.S. private sector added fewer-than-expected jobs in January, while the previous month’s figure was revised down.
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.
Sentiment on the euro was boosted earlier after data showed that the euro zone’s manufacturing PMI 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 euro was slightly higher against the pound, with EUR/GBP adding 0.13% to hit 0.8311.
The pound strengthened broadly earlier after data showed that the manufacturing sector in the U.K. 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 data eased concerns over the outlook for the U.K. recovery after data last week showed that the country’s economy contracted in the fourth quarter, but did little to quell speculation that the Bank of England may implement fresh easing measures.
EUR/USD hit 1.3202 during U.S. morning trade, the session high; the pair subsequently consolidated at 1.3172, gaining 0.68%.
The pair was likely to find support at 1.2930, the low of January 25 and short-term resistance at 1.3213, Tuesday’s high.
The U.S. Institute for Supply Management said its index of purchasing managers rose to 54.1 in January, from a revised reading of 53.1 in December, slightly missing expectations for an increase to 54.5.
A report earlier showed that the U.S. private sector added fewer-than-expected jobs in January, while the previous month’s figure was revised down.
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.
Sentiment on the euro was boosted earlier after data showed that the euro zone’s manufacturing PMI 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 euro was slightly higher against the pound, with EUR/GBP adding 0.13% to hit 0.8311.
The pound strengthened broadly earlier after data showed that the manufacturing sector in the U.K. 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 data eased concerns over the outlook for the U.K. recovery after data last week showed that the country’s economy contracted in the fourth quarter, but did little to quell speculation that the Bank of England may implement fresh easing measures.